BERLIN -- Billionaire producer Haim Saban and German publisher Heinrich Bauer are running neck-and-neck in their rival bids for the assets of bankrupt Kirch Media.
Kirch creditors are meeting today to review the final offers, both in the $2.2 billion range.
In a change to the Bauer bid, Kirch creditor and Bauer backer HypoVereinsbank has agreed to take a 30% stake in broadcasting group ProSiebenSat 1 if their joint offer is accepted. The bank was forced to up its stake from 10% after German antitrust watchdogs signaled they were worried because Bauer already has interests in rival web RTL 2.
The new plan must get European Commission approval, but Bauer is likely to get strong backing from the Bavarian state government, which is said to prefer a German buyer.
Like Bauer, Saban and his partner, French TV group TF1, are reportedly planning a capital increase for ProSiebenSat 1, which has been left emaciated by the advertising downturn.
Saban and TF1 want to fold Kirch's vast film library into ProSiebenSat 1. Bauer, on the other hand, wants to keep it a separate unit, with minority shares going to Kirch creditors Bayern LB, HypoVereinsbank, Commerzbank and DZ Bank. In either case, Kirch's lenders are expected to write off about a third of their $1.65 billion in loans to the bankrupt TV giant. The remaining credit is to be repaid over 10 years.
Saban has two advantages over Bauer: greater liquidity, which would mean cash on hand for the banks, and speedy payment, since he faces no regulatory objections from federal or European watchdogs.
Contact Ed Meza at
ed.meza@mannaa.de