By Elvira Pollina, Andrea Mandala and Amy-Jo Crowley
Milan, March 25 (Reuters) - Mfe-Mediaforeurope Mfeb.mi, the TV Group Controlled by Italy's Berlusconi Family, Has Called a Board Meeting on Wednesday to Review a Possible Bid for German Peer Prosiebensat.1 Psmgn.de, Three Sources With Knowledge of the Matter Told Reuters.
Mfe, Which Runs TV Operations in Italy and Spain, Has Built a Near 30% Stake in Prosieben as Part of a Strategy to Create a Pan-European Advertising-Funded Broadcaster.
Mfe Sees European Expansion as the Response to the Increasing Dominance of U.S. Streaming Giants Such as Netflix Nflxo, and the Flight of Advertising Budgets to the Likes of Tech Powerhouses Facebook Meta.o and Google Googl.o.
Mfe's Board on Wednesday Will Review Two Alternative Moves on Prosieben, the Sources Said, Adding They Both Include Mfe Raising Its Current Stake in the Bavarian Media Company.
Mfe's Stake Stands Just Below the 30% Threshold Which, Under German Law, Triggers a Mandatory Buyout Offer.
It Will Be up the Board to Decide if, and How, to Proceed With a Bid, One the People Said.
Any Bid Would Be Launched Before Prosieben's Annual General Meeting on May 28, Two of the People Said.
Mfe and Prosiebensat.1 Both Declined to Comment.
Mfe Has Secured a 3.4 Billion Euro Financing Package to Support a Potential Takeover of Prosieben.
Part of the Funds Are Needed to Refinance up to 2.1 Billion Euros in Gross Debt Prosieben May Need to Repay Should Mfe Cross a 50% Voting Stake, Sources Have Previously Said, Citing a 'change of Control' Clause in Prosieben's Debt Contracts.
Prosieben Is Worth Around 1.5 Billion Euros at Tuesday's Closing Price. the Value Has Nearly Halved Since Mfe First Invested in the Company in 2019.
Prosieben, Which Operates Also in Austria and Switzerland, Had Resisted so Far to Mfe's Calls to Join Its Pan-European Project, Striving to Remain Independent.
This Month It Kicked off Sales of Its Digital Assets, a Move Which Would Make It Easier for Mfe to Launch an Offer by Streamlining the Business.
(Reporting by Elvira Pollina and Andrea Mandala in Milan, and Amy-Jo Crawley in London; Editing by Valentina Za)
((Valentina.za@Thomsonreuters.com; +39 02 6612 9526;))
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