From Yahoo Finance: 2025-05-31 11:00:00

Former Conservative cabinet minister Nadhim Zahawi has withdrawn from the “British bid” for The Telegraph, leaving publisher Dovid Efune to face a challenge in gatecrashing the planned takeover by US private equity firm RedBird Capital. Zahawi, along with family and friends, contributed £60m of the £170m equity for the bid, which may require an additional £200m from shareholders. RedBird Capital founder Gerry Cardinale is set to become the controlling shareholder in a £500m deal. IMI, owned by the UAE, rejected Efune’s approach. Zahawi played a significant role in the ownership saga over the past two years.

Gerry Cardinale, founder of RedBird Capital Partners, has agreed in principle to acquire control of The Telegraph. Cardinale is in talks with potential British minority co-investors, including the owner of The Daily Mail. IMI is expected to retain a passive stake of up to 15% after a proposed easing of the ban on foreign state shareholdings in newspapers. Zahawi withdrew from the bid due to concerns over Efune’s handling. IMI publicly supports Cardinale’s bid, casting doubt on Efune’s ability to disrupt the agreement. Cardinale clarified that RedBird’s funding does not come from sovereign wealth.



Read more at Yahoo Finance: Former cabinet minister Zahawi pulls out of ‘British bid’ for The Telegraph