Kirch prepares defence against Murdoch takeover bid

Claire Billings,

December 11, 2001

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Kirch prepares defence against <BR>Murdoch takeover bid

LONDON - German media tycoon Leo Kirch is understood to be preparing to defend his company Kirch Group against the threat of a hostile takeover bid by rival magnate Rupert Murdoch's News Corporation.

Reports began to circulate late last week that Murdoch was mulling a takeover bid for the German broadcaster.

The move has been prompted by News Corp's plans to sell its 22% stake in Kirch's pay-TV operation Premier World, which the German media company is bound by a clause in its contract to buy back.

Kirch is at least £3bn in debt and there is believed to be a high possibility that it would be unable to afford the £1.25bn the stake could be worth.

Up until Friday, Kirch had been dismissing suggestions that Murdoch was putting together a takeover bid for the business, but he is thought to have changed his mind about the seriousness of the situation over the weekend.

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