MFE lines up $3.6 bln loan for any ProSieben move
MFE holds nearly 30% of ProSieben
MFE wants to build European TV champion
5 year-loan could fund buyout
Update with shares price, source comment in paragraph 5,10
By Elvira Pollina
MILAN, Dec 4 (Reuters) -MFE-MediaForEurope, the TV group controlled by Italy's Berlusconi family, has asked a group of banks for a 3.4 billion euro ($3.6 billion) loan to cover any financing it may need related to Germany's ProSiebensat.1, a source told Reuters.
MFE MFEB.MI, which owns TV operations in Italy and Spain, has built a nearly 30% stake in ProSieben PSMGn.DE as part of its plans to create a pan-European TV champion and withstand competition from U.S. streaming giants such as Netflix NFLX.O.
The source, who has direct knowledge of the matter but spoke on condition of anonymity as talks are private, confirmed a report in Italian newspaper Il Messaggero that MFE has asked for a commitment for a five-year loan by as early as Dec. 5.
MFE, which is ProSieben's single-largest investor, wants to have the financing ready to support any potential needs linked to ProSieben in 2025, which includes a possible buyout offer, the source said.
The source said that while MFE wanted to be ready to move under different scenarios, including in case the German peer needs additional capital, any decision was not imminent.
MFE and ProSieben declined to comment.
Shares in ProSieben, whose second largest investor is Czech investment firm PPF, gained as much as 13%, giving the company a market value of 1.2 billion euros.
The Bavarian broadcaster also has 2.1 billion euros in gross debt which it may need to repay if its creditors opt to make use of a change of control clause in the lending contracts.
Reuters reported in April that MFE had held talks with various banks, including UniCredit CRDI.MI, ready to fund a potential bid for ProSieben worth up to around 4 billion euros.
MFE has stopped short of launching a bid for ProSieben so far because the risk assessment of a transaction advised against moving at this stage, the source said.
The Milan-listed company had been urging ProSieben to speed up a turnaround after it trimmed its profit guidance and press ahead with planned online assets, a move which could make it easier to proceed with a bid for a streamlined group.
Il Messaggero said UniCredit had a lead role in the loan, but the source said the banks are all equally involved
The lenders working on the financing package are Banco BPM, BNP Paribas, BPER Banca, Deutsche Bank, Intesa Sanpaolo, Mediobanca and UniCredit, the person said.
All the banks involved declined to comment or were not immediately available.
($1 = 0.9508 euros)
Reporting by Elvira Pollina; additional reporting by Isabel Demetz, Writing by Valentina Za and Elvira Pollina; Editing by Andrew Heavens, Alexander Smith and David Evans
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