German media conglomerate Kirch Gruppe is negotiating the purchase of a 54% stake in rival EMTV & Merchandising.

Kirch’s TV unit KirchMedia is at the centre of the talks, aiming to buy the shares currently owned by EMTV’s founder Thomas Haffa.

Discussions are thought to be at an advanced stage and a deal could be announced this week. However, no price for the stake has yet been announced.

The news broke as EMTV’s share price dropped by over 20% following rumours of an imminent profit warning. EMTV has been plagued by accounting errors since it paid a total of Euro 3 billion ($2.6bn) for stakes in the Jim Henson Company and the Formula One holding company early this year.

News source: Financial Times