Berlusconis' TV group MFE secures financing for European M&A push
Pool of banks grant 3.4 bln euro loan
MFE holds 30% in ProSieben, could make a bid
Monitoring TV asset sales in Portugal, Netherlands, Poland
Updates with comments from sources in paragraphs 7, 11, 14
By Elvira Pollina
MILAN, Dec 12 (Reuters) -MFE-MediaforEurope MFEB.MI, the TV group controlled by Italy's Berlusconi family, has secured the support of banks for a 3.4 billion euro ($3.6 billion) loan to be ready to advance its cross-border expansion plans, its chief executive said.
MFE, which owns commercial TV operations in Italy and Spain, has built a near 30% stake in German peer ProSiebenSat.1 PSMGn.DE as part of plans to create a pan-European advertising-funded broadcaster.
It sees that strategy as the response to the increasing dominance of U.S. streaming giants such as Netflix NFLX.O, and the flight of advertising budgets to the likes of Facebook META.O and Google GOOGL.O.
Holding a press briefing at the company's headquarters near Milan late on Wednesday, CEO Pier Silvio Berlusconi said MFE wanted to be ready for opportunities.
"We want to be ready to assess what, if anything, could be the right thing to do in Germany, but also for any other opportunities," he said, without elaborating.
MFE is monitoring TV assets sales in the Netherlands, Poland and Portugal, though ProSieben remains its main focus, a source with knowledge of the matter told Reuters. MFE declined to comment.
PROSIEBEN MOVE
"We are following the situation in Germany, which is very complex, given the weakness of the economy and the political crisis," Berlusconi said.
MFE's holding in ProSieben is just below the threshold that triggers a mandatory takeover under German laws.
Under a takeover scenario, MFE would likely opt for a voluntary cash offer, the source said.
While a mandatory bid cannot be pulled and must take place at a pre-determined price, a voluntary offer can be subjected to 'adverse market condition' clauses allowing a bidder to modify its terms or withdraw it.
Germany is holding early elections in February, and MFE is unlikely to make any moves before that, according to a second person with knowledge of the matter.
"Let's hope 2025 is the year in which our international strategy can shift up a gear," Berlusconi added.
Since MFE first invested in ProSieben in 2019, the Bavaria-based group has resisted MFE's calls to join its pan-European project, striving to remain independent.
Berlusconi played down the risk of political resistance in Germany, which Italian lender UniCredit CRDI.MI is facing in its approach to Commerzbank CBKG.DE, saying MFE had been constantly in touch with local authorities over ProSieben.
($1 = 0.9527 euros)
Reporting by Elvira Pollina. Editing by Valentina Za and Mark Potter
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