The executive and supervisory boards of German broadcaster ProSiebenSat.1 Media have rejected the proposals of Berlusconi family-controlled MFE-MediaForEurope that would have restructured the media giant.
MFE, which is ProSiebenSat.1’s largest shareholder, has submitted proposals for, among other things, the splitting up of the company, ahead of the annual general meeting scheduled on April 30.
The demerger would result in the creation of two separate listed companies, managed by independent management teams. In particular, MFE is aiming to spin-off ProSieben’s e-commerce and dating assets from the group’s core TV operations. The break-up would allow MFE to mount a potential buyout.
ProSiebenSat.1 came out against the proposed split because the restructuring would result in a significant increase in the financial leverage of the group “and thus make strategic acquisitions just as impossible as a customary dividend policy”, the company said in a statement.
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