Bertelsmann Mulls Offer for Outstanding RTL Stake

05 December 2007

GUTERSLOH, Germany: European media giant Bertelsmann is reportedly hoping to swallow the last 10% of its 90%-owned subsidiary, Luxembourg-headquartered broadcaster RTL Group.

Bertelsmann confirmed it is mulling a deal to buy the outstanding tranche of publicly traded shares - which experts believe could be valued at around €1.29 billion ($1.89bn; £918m).

But a spokesman added: "No decision has been made to proceed with an offer."

RTL, which operates more than sixty TV and radio channels across 10 countries, has been slipping further into Bertelsmann's maw since its creation through a series of mergers in the 1990s and 2000.

RTL said in a statement that it would asses any offer, if one was forthcoming, "in accordance with the interests of the company, its employees and its minority shareholders".

The purchase of the remaining shares would allow Bertelsmann to save on administrative costs and achieve other efficiencies. A previous attempt to buy foundered on price.

Data sourced from Wall Street Journal Online. additional content by WARC staff