RedBird scraps bid for the Telegraph in the latest in a multi-year saga: US-based RedBird Capital Partners withdrew its GBP 500 mn bid for The Telegraph newspaper after it had formally requested approval for the acquisition last month from the British government following months of scrutiny, Reuters reports, citing people it says are close to the matter. The new bid was waiting for final regulatory approval.

Why? The US-based investment firm is said to have walked away before regulators completed their review, with sources saying both opposition from the Telegraph’s newsroom and a slow-moving clearance process raised doubts over the transaction’s feasibility and timeline.

ICYMI- The proposal had been restructured earlier this year to comply with updated UK media-ownership rules, which now allow foreign state-backed investors to hold up to 15%. Under that model, Abu Dhabi-linked IMI was set to take a small minority stake within RedBird’s bid, capped at 15% under the new regulations, rather than a majority stake through an original bid from its JV with RedBird Capital.

Back to square one: The withdrawal leaves the Telegraph’s sale unresolved for more than two years, with no final regulatory ruling issued and no remaining approved bidders in the process, although one source said RedBird’s founder Gerry Cardinale could restart talks as part of a consortium with other possible investors.

The move could also leave Telegraph debt-ridden, as the GBP 500 mn loan agreement offered by Redbird and IMI was contingent on a sale, the Telegraph said. If no sale occurs, the debt would land on its balance sheet.

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