The Telegraph and Spectator titles are heading back on the market, Guido hears, after RedBird IMI informed the government it intends to step back from the acquisition process. Whether that remains RedBird’s final position remains to be seen…

An announcement from DCMS is expected in the next few minutes. The auction will be run by (George Osborne shop) Robey Warshaw and Raine. Market sources involved say that there is ‘considerable’ interest in the assets – mainly from ‘beyond the UK’ with number of funds lining up to take a look. There is certainly market interest at buying the trophy assets at a premium – the question (again) is who will be able to navigate a successful bid. Nervous times at Telegraph towers…

UPDATE: Statement from Culture Secretary Lucy Frazer:

The parties have signalled their intention to withdraw from the deal. Throughout this process I have raised concerns about the potential impact of this deal on free expression and accurate presentation of news, and I took steps to ensure that media freedom was protected while there was an investigation into those concerns.

I will now allow the parties to conduct an orderly transition and I will monitor the outcome with a view to taking any further regulatory action as required under the Enterprise Act.

The free press is a cornerstone of our democracy, and we cannot take it for granted. That is why I used my powers as Culture Secretary to investigate this deal.

More widely, it is why we are banning any ownership, influence, or control by foreign states of our newspapers and news magazines. We are acting to ensure that we retain the ability to step in where necessary to protect the integrity and independence of these publications, given the unique role they play in our democracy.”