Telegraph future in limbo again as RedBird abandons £500m deal

The future ownership of the Daily Telegraph has been plunged back into crisis after RedBird Capital Partners abandoned its proposed £500m takeover.

Sky News has learnt that a consortium led by RedBird and including the UAE-based investor IMI has formally withdrawn its offer to buy the right-leaning newspaper titles. In a statement issued to Sky News, a RedBird Capital Partners spokesman confirmed: "RedBird has today withdrawn its bid for the Telegraph Media Group.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 and we will work hard to help secure a solution which is in the best interests of employees and readers." Money blog: Apple launches £220 iPhone 'sock' The move comes nearly two-and-a-half years after the Telegraph's future was plunged into doubt when its lenders seized control from the Barclay family, its long-standing proprietors. RedBird IMI then extended financing which gave it a call option to own the newspapers, but its original proposal was thwarted by objections to foreign state ownership of British national newspapers.

A new deal was then stitched together which included funding from Daily Mail owner Lord Rothermere and Sir Leonard Blavatnik, the billionaire owner of sports streaming platform DAZN. Under that deal, Abu Dhabi-based IMI would have taken a 15% stake in Telegraph Media Group.

Read more from Sky News:Lloyds clinches £120m deal for digital wallet provider CurveStarmer and Reeves in U-turn over income tax'Staggering' 20-year fall in domestic UK flights In recent weeks, RedBird principal Gerry Cardinale had reiterated his desire to own the titles despite apparently having been angered by reporting by Telegraph journalists which explored links between RedBird and Chinese state influences. Unrest from the Telegraph newsroom is said to have been one of the main factors in RedBird's decision to withdraw its offer.

The collapse of the deal means a further auction of the titles is now likely to take place in the new year..