By Alexander Hübner MUNICH (Reuters) -The head of the works council at ProSiebenSat.1 on Friday demanded that the German media group's likely takeover by Italian suitor MFE must not result in job
ProSiebenSat.1 Works Council Raises Alarm Over Potential Job Cuts in MFE Deal
Concerns Over Job Security in MFE Acquisition
By Alexander Hübner
MFE's Bid and Shareholder Response
MUNICH (Reuters) -The head of the works council at ProSiebenSat.1 on Friday demanded that the German media group's likely takeover by Italian suitor MFE must not result in job losses.
Works Council's Stance on Job Cuts
Owned by the family of late Italian Prime Minister Silvio Berlusconi, MFE is courting ProSieben shareholders to sell their holdings over the next two weeks as it seeks to build a pan-European television company to compete with U.S. streaming giants.
Political Concerns Raised by Journalists' Association
ProSieben management dropped its resistance and advised shareholders to accept MFE's bid after it raised its offer earlier this month.
MFE has not talked explicitly of any job cuts but mentioned scope for "synergies" - cost savings from the combined entity. In a press release last month, MFE said it would continue to uphold its founding values, which included pluralism and employment protection.
"When we hear the word synergies, we are alarmed," works council chief Ulrich Schaal told Reuters by phone.
"Synergies – that means cost savings, and that is always associated with staff cuts. That would be a major mistake from a business perspective."
ProSieben has already cut 800 jobs in recent years.
"We cannot afford a larger reduction," Schaal, who does not fundamentally oppose the sale to the Italians, said.
"From an economic perspective, the takeover comes at the right time. It's still better than an entry by financial investors," he added.
Germany's DJV journalists' association appealed on Thursday to ProSieben investors to not sell their shares, warning MFE could impose a "right-wing populist agenda".
MFE, which has already been ProSieben's largest shareholder for a year, declined to comment on the suggestion of a right-wing agenda and Schaal brushed aside the concerns.
"I don't think we have to worry about political influence on reporting," he said. "There have been no attempts at that so far."
(Writing by Matthias Williams; Editing by Kirsten Donovan)
