TF1 still wants Kirch stake

net1

French broadcaster TF1 today confirmed it was still interested in acquiring a 10% stake in a consortium bidding for Germany's biggest broadcaster, KirchMedia.
The French television group had been part of an original $2.2bn bid for KirchMedia in conjunction with media billionaire Haim Saban, but pulled out of signing the deal after failing to get board approval in time.

Today, however, TF1 chairman Patrick Le Lay told shareholders the group was planing to invest between £69m and £104m in the consortium bidding for the TV businesses of failed German media tycoon Leo Kirch.

"We will propose to the board that we try to invest 100-150 million euros for around 10% of the group buying the Kirch assets," Mr Le Lay told shareholders.

He added that such a stake would enable TF1 to gain exposure to the German TV market.

Haim Saban's bid last week ran into its first hurdle when the German creditor banks that control KirchMedia's assets balked over terms.

The banks, one of which was involved in a failed rival bid for the German TV assets, wrote to Mr Saban accusing him of rewriting some of the terms including the speed at which their loans would be repaid.

"The most recently presented business plan has substantial disadvantages for the banks' position in comparison with the originally presented business plan," the banks said. "Further negotiations can only be based on the loan documentation drafted by the banks as well as the business plan dated March 5."

But sources close to the deal said Mr Saban's last minute bid meant the media mogul had some catching up to do.

Israeli-born Mr Saban, who built his fortune in children's TV by bringing the Mighty Morphin Power Rangers to a global audience, won the race for KirchMedia last month, trumping what many analysts thought was a winning bid from Germany's Bauer group backed by the HVB banking conglomerate.

Last week sources indicated that Mr Saban was still looking for backing for his bid and was prepared to surrender between 35-45% of the new company to new investors, but not overall control.