Abu Dhabi-backed RedBird IMI yesterday said it would sell the Telegraph after it scrapped its acquisition of the right-leaning newspaper group because government intervention meant the deal was “no longer feasible”.
RedBird IMI effectively took control of the Telegraph and the Spectator magazine in December when it repaid a debt owed by then-owner the Barclay family to Lloyds Bank, including a £600 million ($753m) loan against the titles.
But the acquisition, which already faced a lengthy regulatory inquiry, was dealt a blow last month when Britain said it would stop foreign governments owning newspapers.
“RedBird IMI has today confirmed that it intends to withdraw from its proposed acquisition of the Telegraph Media Group and proceed with a sale,” a RedBird IMI spokesperson said.
“We have held constructive conversations with the government about ensuring a smooth and orderly sale for both titles.”
The government issued a notice in December stopping RedBird IMI transferring ownership of the newspaper or changing its management and board while it investigated the deal.
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