Telefonica’s €725m (US$1bn) bid to take over Spanish satellite broadcaster Distribuidora de Television Digital (DTS), better known as Canal+, could be rivalled by fellow minority shareholder Mediaset.
Telefonica’s offer for 56% of Canal+ was…
Telefonica’s €725m (US$1bn) bid to take over Spanish satellite broadcaster Distribuidora de Television Digital (DTS), better known as Canal+, could be rivalled by fellow minority shareholder Mediaset.
Telefonica’s offer for 56% of Canal+ was accepted by parent Prisa last week but now Mediaset – which, like Telefonica, holds a 22% stake in the pay-TV operator – is considering matching the bid.
The Italian media company, controlled by former Prime Minister Silvio Berlusconi, has an option with Prisa to match the bid of any buyer. If it exceeded a bid by even €1 it could rewrite conditions for offers, two people familiar with the matter told Bloomberg.
A second option could allow Mediaset to take its stake to 50% and then create a joint venture with Telefonica, the report added.
Prisa previously said it is looking to close the deal in 30 days. The transaction will require regulatory approval and Spain’s number three mobile operator Orange has already complained about the deal.
The French telco urged antitrust and telecoms regulator CNMC to veto the takeover, or impose significant remedies, as Orange said the deal would give Telefonica an 80% market share of pay-TV content in Spain.
Mediaset is said to be considering waiting for the outcome of the antitrust review before lodging a bid.
