Abu Dhabi-backed group ends Telegraph takeover bid [Video]

An Abu Dhabi-backed group planning to take over Britain’s Telegraph Media Group (TMG) said Tuesday it will withdraw and sell on the business after the UK government moved to block the deal.

RedBird IMI, a joint venture between US firm RedBird Capital and Abu Dhabi’s International Media Investments, struck a £1.2 billion ($1.5 billion) deal with TMG’s previous owners, the Barclay family, in November.

The agreement, which has faced opposition over its potential impact on freedom of speech given Abu Dhabi’s press censorship record, saw RedBird IMI pay off bank debts in exchange for control of the media group.

However, last month the UK government said it would bring forward legislation to block such state-backed takeover deals in the industry, while Culture Secretary Lucy Frazer also mulled a full regulator probe.

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