The gulf state-backed fund behind a takeover of the Telegraph newspaper group has said it will now withdraw and sell on the business after politicians moved to block the deal.
RedBird IMI, an Abu Dhabi-backed fund, last year reached a deal with previous Telegraph owners the Barclay family to take control of the newspaper group – and fellow publication The Spectator – by paying off debts owed to their bank, Lloyds.
However, last month the Government said it would bring forward an amendment to the Digital Markets, Competition and Consumers Bill that would block such state-backed takeover deals in the industry.
A RedBird IMI spokesman said: “RedBird IMI has today confirmed that it intends to withdraw from its proposed acquisition of the Telegraph Media Group and proceed with a sale.
“We continue to believe this approach would have benefited the Telegraph and Spectator’s readers, their journalists and the UK media landscape more widely.
“Regrettably, it is clear this approach is no longer feasible.”
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