Dutch TMG group eyes big stake in ProSiebenSAT1: report
Friday, June 1st, 2007

ProSiebenSAT1, the German commercial television giant, could soon have a new big shareholder in the form of Dutch newspaper publisher TMG, the Financial Times Deutschland reported today. ProSiebenSAT1 is currently owned by private equity firms KKR and Permira, which want to merge it with rival TV firm SBS with the aim of creating a new European broadcasting giant.

However, Amsterdam-based Telegraaf Media Groep holds a 20-percent stake in SBS, as well as a right of first refusal on the remainder if SBS were to be sold, and could therefore block such a merger if it wanted to, FT Deutschland said, quoting sources close to TMG. TMG had repeatedly threatened to make use of that right in recent weeks, the newspaper said.

In return for waiving that right, KKR and Permira might be prepared to sell TMG a stake in the new merged ProSiebenSAT1/SBS group, it continued. While the exact size of the stake would depend on valuations, possible estimates put at around 10 percent, FT Deutschland said. It said that a TMG spokeman declined to comment on the information.

(Source: AFP)