The boards of ProSiebenSat.1 (PSMGn.DE) have advised against an "inadequate" takeover bid from MFE-MediaForEurope (MFEB.MI), the TV broadcaster controlled by Italy's Berlusconi family, the German broadcaster said on Thursday
MFE, which has commercial TV operations in Italy and Spain, made an offer for ProSieben in March as part of a push to create a pan-European broadcaster - a strategy resisted by ProSieben, which is striving to remain independent.
"Both governing bodies have concluded that the offer is inadequate from a financial perspective," ProSiebenSat.1 said in a statement, adding that it "does not reflect the expected future development of the value of the company".
Milan-listed MFE, which holds a 30.14% stake in ProSieben declined to comment.
Earlier this month, Czech investment firm PPF, which holds a 15% stake in ProSiben, launched a bid to lift its stake in the German broadcaster up to 29.99%, a move welcomed by ProSiebenSat.
MFE made a cash-and-share bid at the minimum level allowed by German takeover rules, offering 4.48 euros in cash and 0.4 MFE A shares per ProSiebenSat.1 share.
That is below the current share price of 7.09 euros and PPF's offer of 7 euros per share.
Having already crossed a 30% threshold which normally triggers a mandatory 100% takeover offer under German law, MFE will have the option to buy additional shares in the market after the end of its buyout bid.
However, a source close to the matter told Reuters last week that it is also weighing whether to raise its bid in response to the counter-proposal by PPF.
MFE is looking to build a European ad-funded TV platform to resist competition from the likes of U.S. Netflix (NFLX.O) and is pushing for an accelerated sale of ProSiebenSat.1's online investments in order to reduce its debt.
