Fininvest, the family investment vehicle of media tycoon Silvio Berlusconi, is buying a 3.1% stake in Premiere, the loss-making German satellite operator 25.1% owned by News Corp. News of the purchase temporarily sent Premiere's shares up 32.2% on speculation that Fininvest may take over the firm. However, the Italian company later made clear that it only plans to raise its stake to 5% and is not seeking board representation.
Fininvest's move comes only weeks after another investment firm, London-based Odey Asset Management, bought a 6.3% stake in Premiere. Shares in the German firm lost 73.9% of their value in the past 90 days, as the firm continues to lose money and subscribers. The firm expects a loss of up to USD96.6m this year and is in negotiations with banks to restructure its debt.
Meanwhile, News Corp has repeatedly increased its stake in Premiere in the past year amid ongoing speculation it could ultimately take control of the firm. Its 25.1% stake enables News Corp to block any other shareholder's attempt to take control of Premiere. Rupert Murcdoch's group also managed to install former Sky Italia head Mark Williams as Premiere's CEO in September.
StrategyEye's related companies: Fininvest, News Corporation, Premiere, Premiere Tv
