RedBird IMI prepares to withdraw bid for the Telegraph, FT reports

Telegraph Media Group sale

(Reuters) - Abu Dhabi-backed investment group RedBird IMI is preparing to formally withdraw its bid to take over the Telegraph as early as next week, the Financial Times reported on Friday, citing people close to the deal.

Britain said last month it would refer the UAE-led takeover of the Telegraph for a lengthy review, a move that effectively killed the deal because a law banning foreign governments from owning newspapers is due to come into force in the near term.

($1 = 0.7998 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Anil D'Silva)