(Bloomberg) -- RedBird IMI is set to walk away from its takeover of the Telegraph, according to a person familiar with the matter, in a move likely to trigger another bidding war for the UK newspaper group.

A sale process is expected to begin in the coming days, the person said, asking not to be identified as the details aren’t public. The UAE-backed investment group could officially withdraw as early as next week, according to the Financial Times, which first reported the plans. 

RedBird IMI, run by former CNN chief Jeff Zucker, has been forced to give up on its takeover after the UK announced plans in March to block foreign governments from taking stakes in media titles. The investor is a joint venture between RedBird Capital Partners and UAE Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan’s IMI.

A sale of the Telegraph, a part of the Conservative establishment, is expected to attract bidders including rival publisher Daily Mail & General Trust Plc and hedge fund manager Paul Marshall. National World Plc, the company behind the Yorkshire Post, has also expressed an interest in buying the Telegraph.

The Spectator magazine, another pro-Conservative title, will also be up for grabs, and is expected to attract interest from parties including Rupert Murdoch’s News Corp. 

RedBird IMI effectively secured control of the Telegraph and Spectator in November after agreeing to a £600 million loan package with the Barclay family, the former owners. Separately, IMI lent a further £600 million secured against other commercial interests owned by the Barclays. 

But the deal met with growing unrest in political and media circles about the possible impact on press freedom, leading to the proposed law that would in effect block the takeover in its current form.

RedBird IMI has been in talks with the UK government about whether the two titles can be sold separately to receive a higher overall price. Investment bankers at Robey Warshaw and Raine Group are advising on the onward sale. 

RedBird IMI declined to comment.

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