German broadcaster ProSieben has said both its executive and supervisory boards have recommended the company reject a bid by Media for Europe (MFE) to acquire the company.
“Both governing bodies have concluded that the offer is inadequate from a financial perspective,” said the company. adding that MFE’s proposal “does not reflect the expected future development of the value of the company”.
ProSieben added that both Morgan Stanley, which is advising the executive board, and Goldman Sachs, which is working with the supervisory board, agreed with the assessment.
Following ProSieben’s announcement, Reuters reports Czech investment group PPF Group would consider partnering with MFE on a bid for the German company.
Earlier this month PPF announced it was seeking to expand its holding in ProSieben from its current figure of around 15 per cent to 29.9 per cent, just beneath the threshold at which an acquisition offer would become compulsory under German law.
Reuters quotes two unnamed sources as suggesting PPF is “open” to working with MFE on a joint bid, although no discussions between the two parties have taken place.
MFE first expressed interest in acquiring the company late last year. It wants to build a European free-to-air TV hub to take on the growth of the global streaming services.
