Increased proposal by Berlusconi for ProSiebenSat acquisition announced
In a recent development, the Italian media conglomerate, MediaForEurope (MFE), has enhanced its takeover bid for the German media group ProSiebenSat.1. The offer now includes a premium of 16% on the Xetra closing price on Friday, with a constant cash component of €4.48 per share and additional MFE-A-A shares worth €1.30[4][3]. This raises the total offer value to approximately €8.62 per ProSiebenSat.1 share, although market fluctuations lower this to around €7.90 based on current MFE share prices[2].
The increased bid comes amidst concerns voiced by German State Minister for Culture, Wolfram Weimer, regarding potential risks to journalistic independence and media diversity if ProSiebenSat.1 falls under full control of MFE. The minister fears political influence could affect journalistic quality and media freedom given the Berlusconi family's past close ties to figures like Vladimir Putin[1]. Weimer has invited Pier Silvio Berlusconi, head of the family holding, for discussions at the German Chancellery to address these concerns.
Pier Silvio Berlusconi, son of former Italian Prime Minister Silvio Berlusconi, confirmed that MFE does not aim to completely acquire ProSiebenSat.1, but seeks flexibility to set a clear direction based on a shared vision[1]. MFE currently holds 30.63% of ProSiebenSat.1[1].
The bidding war for ProSiebenSat.1 is not only contested by MFE. The Czech ProSieben major shareholder, PFP, is also trying to increase its stake, but only up to 29.99%. PFP's current bid is €7.00 in cash, which is currently below the share price[5]. PFP currently holds 16.48% of ProSiebenSat.1[5].
The federal government has repeatedly accused the Russian government of deliberately spreading disinformation in Europe[6]. The concerns about foreign political influence in the media sector have escalated the debate over media plurality in Germany, making it a significant point of public and political discussion.
The acceptance period for MFE's offer runs until August 13[3]. The share price of ProSieben rose by around 10% in Frankfurt's early trading following the improved offer[2]. MFE has assured that it will maintain the editorial independence and national identity of ProSiebenSat.1, emphasising that an ownership change must not lead to a restriction of journalistic independence[1].
References:
- BBC News
- Reuters
- Bloomberg
- Financial Times
- MarketScreener
- Deutsche Welle
- In the realm of general-news and politics, there has been increasing interest in the financial aspect of the bidding war for ProSiebenSat.1, particularly in considering if investing in the company could have potential risks or benefits.
- As the Commission works on a proposal for a directive on the protection of the environment, it's worth noting that some industries, such as media, which are arguably crucial for the dissemination of eco-awareness and efficient financial practices, are subject to scrutiny and regulation in this context.
- The debate over media plurality in Germany, influenced by concerns about foreign political influence and its impact on journalistic independence, could prompt businesses to reconsider their investment strategies in both the media and environmental sectors.
