RedBird Capital pulls out of deal to buy newspaper

US funding group RedBird Capital has pulled out of a deal to purchase the Day by day and Sunday Telegraph for £500m.RedBird had a earlier try to purchase the Telegraph rebuffed by politicians because it was majority-funded by Abu Dhabi’s IMI group – which is owned in flip by the Abu Dhabi royal household.A regulation change meant that overseas sovereign wealth funds might take a most stake of 15% in newspapers or periodicals.The brand new bid complied with that rule, however it’s understood that the federal government meant to submit the deal to regulatory overview.A spokesman for the group stated: “RedBird has right this moment withdrawn its bid for the Telegraph Media Group.”We stay absolutely assured that the Telegraph and its world-class workforce have a shiny future forward of them and we are going to work onerous to assist safe an answer which is in the perfect pursuits of staff and readers.”Sources near Redbird insisted that they have been assured that the bid would have handed a authorities overview course of, however cited destructive articles towards the bid from the present Telegraph newsroom as a consider shelving their curiosity.RedBird itself has confronted questions over the extent of funding it has acquired from China and Gulf primarily based buyers.RedBird founder Gerry Cardinale had deliberate to develop the Telegraph’s attain and subscriber base within the US, believing there to be a spot available in the market.Amongst different investments, RedBird Capital owns the Italian soccer workforce AC Milan.The Day by day Telegraph has been in limbo for over two years, when the Redbird IMI consortium paid off the money owed of the Telegraph’s earlier house owners, the Barclay household, hoping to take eventual possession of the newspapers.