(Reuters) -The boards of ProSiebenSat.1 have welcomed a bid from Czech investment firm PPF to lift its stake in the company, but described the offered price as "inadequate from a financial point of
ProSiebenSat.1 Acknowledges PPF Bid but Calls Offer Financially Insufficient
(Reuters) -The boards of ProSiebenSat.1 have welcomed a bid from Czech investment firm PPF to lift its stake in the company, but described the offered price as "inadequate from a financial point of view", the German broadcaster said on Wednesday.
In May, PPF launched a bid to lift its stake in ProSieben to just under 30%, countering plans by top shareholder MFE-MediaForEurope to tighten its grip on the company.
The supervisory and executive board welcome PPF's commitment and support, ProSieben said in a statement.
However, both boards concluded that "the offer price does not adequately reflect the earnings potential and long-term value of ProSiebenSat.1," it said.
The boards have therefore decided not to make a recommendation regarding the acceptance of the bid to its shareholders, ProSieben said.
PPF offered 7 euros ($8.06) per ProSieben share, which represented a premium of 17.4% compared to the last closing price prior to the day of the offer, and is close to where the shares are trading now.
In March, the Berlusconi family-owned broadcaster MFE offered 4.48 euros in cash and 0.4 MFE A shares per ProSieben share, which ProSieben had advised against.
The acceptance period for both offers ends on August 13.
($1 = 0.8690 euros)
(Reporting by Isabel Demetz; editing by Matthias Williams and Tomasz Janowski)
