Kirch pub stake goes to Deutsche

Bank intends to sell asset

By CHRISTIAN KOEHL

Kirch

COLOGNE -- Kirch Media has lost its battle to retain its 40% stake in publishing house Axel Springer. It was acquired by Deutsche Bank on Tuesday in lieu of a $725 million loan.

Kirch had been looking for a takeover candidate, but a special veto that gives Springer a say in the selection of new owners had proved insurmountable.

In a public tender without any other bidders, Deutsche Bank bought the stake for $653 million -- Leo Kirch had expected it to fetch $900 million.

Deutsche Bank intends to sell the asset and is already talking to Axel Springer's widow, Friede Springer, about a transfer of 10%, which would give her 55% in the company.

The deal had remained in the balance until the last moment. Kirch could have frozen it by declaring bankrupt his Print Beteiligung division, which held the shares.

Kirch Media's sports rights will be under scrutiny Thursday, when potential buyers must submit letters of intent. Leading candidates are the management of Kirch Sport and Swiss investment company Invision.