Bauer sets sights on ProSieben control
Kirch Media's film library valued at $1.4 billion
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Bauer and HypoVereinsbank, one of Kirch Media's many creditors, want 72% of the voting rights in broadcasting group ProSiebenSat 1 held in a jointly owned entity controlled 90% by Bauer and 10% by HypoVereinsbank.
Bauer is reportedly set to pay about 480 million euros ($518 million) for the 72% in voting shares, which equals only 36% of the company's capital stock but would give Bauer control of the broadcaster. Kirch Media owns 52% of ProSiebenSat 1, and Bauer is expected to pick up the remaining 16% of that stake.
Fellow publisher Axel Springer holds a further 11.5% of the voting rights and capital stock in the company but has said it would sell them if it could not raise its stake in the broadcaster, which appears unlikely. Former Kirch Media topper Leo Kirch holds a first-buy option for Springer's stake, which he would have to waive before Bauer could bid for it.
As for Kirch Media's vast film library, which is valued at $1.4 billion, Bauer and Kirch Media's creditor banks have been looking at two possibilities: either Bauer and HypoVereinsbank pick up 52% while the creditors take a 48% share, or ProSiebenSat 1 is brought in as a fellow shareholder with up to a 10% stake in the film rights business, leaving Bauer and HypoVereinsbank with 42% and the creditors with the remaining 48%.
The takeover is expected to be finalized by the end of February.
Bauer also responded to recent statements by German cartel authorities, who have expressed misgivings about Bauer keeping its stake in rival web RTL 2 as well as ProSiebenSat 1. Company officials said they would present alternatives to federal watchdogs, adding that they were prepared to fulfill necessary requirements as long as they did not present any financial disadvantages.
With Bauer making headway with its bid, billionaire Haim Saban's chances of picking up the assets appear to be growing slimmer.
