RedBird IMI has scrapped plans to acquire the production arm of ITV, as the investment vehicle's chief executive decried the UK regulatory environment.

RedBird IMI, the Abu Dhabi-backed vehicle whose bid for the Daily Telegraph was blocked by the UK last year, held preliminary talks with ITV earlier this year with a view to merging the broadcaster's studio arm with rival All3Media, which RedBird IMI had bought for £1.1bn.

But those talks stalled some time ago and the group is not currently interested in a deal with the broadcaster, according to a person familiar with the matter.

A merged production group would have been worth more than £3bn and would have brought together the UK studios responsible for shows including Love Island, Traitors and Rivals.

Walking away from any immediate plans to bid for ITV comes despite ambitious plans for All3Media. RedBird IMI's New York-based boss, Jeff Zucker, told the Royal Television Society conference in Cambridge on Wednesday that RedBird IMI -- which focuses on sport, media and entertainment -- wanted to "keep growing" the production company.

But Zucker also gave a gloomy assessment of the UK's investment environment. He said the UK's regulations -- particularly surrounding initial public offerings -- were too onerous, and meant the investment group would not want to list portfolio companies in the country.

"I think about the public markets here. In the first half of this year there were less IPOs than there had been in 30 years . . . So as we think about investing in companies that we want to grow and eventually take public, London is not necessarily the place where you want to do that," Zucker said.

Zucker, who previously led CNN, cited figures first published in the Financial Times, that fundraising from IPOs in London has tumbled to its lowest level in at least 30 years.

The five listings on the London Stock Exchange in the first six months of this year raised £160mn, the lowest half-year amount since 1995, according to Dealogic data.

"We want to invest in companies here . . . But unless the regulatory environment and the rules around capital on the LSEG change, I don't think that is something that we would look to do," Zucker added.

The withdrawal of RedBird IMI from the ITV process leaves potential bidders such as French production group Banijay.

Options explored by the French company include an offer for ITV Studios or a full takeover of London-listed ITV. The latter would be likely to mean Banijay would seek to bring in third-party investors, with the company having held talks with CVC to finance a deal.

Shares of ITV have risen more than 10 per cent since the beginning of the year amid takeover speculation.

ITV, Banijay and All3Media declined to comment.

RedBird IMI did not immediately respond to requests seeking comment.

RedBird IMI scraps plans for ITV Studios bid