The future of the Daily Telegraph remains uncertain after RedBird Capital Partners withdrew its £500 million takeover bid.
RedBird’s previous bid to buy the Telegraph was rejected as most of the money came from Abu Dhabi’s IMI group, controlled by the Abu Dhabi royal family.
A law now restricts foreign sovereign wealth funds to holds maximum 15% stake in newspapers or magazines.
Around two and a half years ago, the Telegraph faced uncertainty when its lenders took control from the Barclay family.
In a statement issued to Sky News, a RedBird Capital Partners spokesman confirmed, “RedBird has today withdrawn its bid for the Telegraph Media Group. We remain fully confident that the Telegraph and its world-class team have a bright future ahead of them.”
It added, “We will work hard to help secure a solution which is in the best interests of employees and readers."
The new offer followed the required rule, but despite this the government planned to have deal examined by regulators to ensure it meets all official standards before approval.
Sources close to RedBird belived that their offer would have been approved by the government, but they decided not to pursue it partly as critical news coverage from the Telegraph made it less attractive.
Reports now suggested that the newspaper will probably be put up for sale again through another auction early next year.
