Spanish telecoms giant Telefonica and Italian group Mediaset have not exercised a call option to take over Prisa’s Canal+ DTH provider in Spain. Media conglomerate Prisa said the option has now expired.
However, Telefonica is still being linked with…
Spanish telecoms giant Telefonica and Italian group Mediaset have not exercised a call option to take over Prisa’s Canal+ DTH provider in Spain. Media conglomerate Prisa said the option has now expired.
However, Telefonica is still being linked with an US$800m acquisition of Canal+, which it already holds a 22% stake in.
Last week a person briefed on the situation told SatelliteFinance that, while Telefonica is interested in taking over Canal+, it would likely pass on the call option and negotiate a deal outside of the agreement.
The person referred to uncertain conditions attached to the call option that Telefonica was not happy with, without going into specifics.
The call option was triggered after Prisa’s main shareholders had reduced their stake in the Spanish group below 30%. That gave Telefonica and Mediaset, which also holds 22% of Canal+, the option to acquire Prisa’s 56% stake in the satellite broadcaster for an undisclosed amount.
Telefonica acquired its 22% stake from Prisa for €470m in late 2009. The company has made no secret of its desire to purchase the remainder of Canal+. Last month Telefonica COO Jose Maria Alvarez-Pallete confirmed that the telco was interested in buying Prisa’s 56% stake.
Prisa is selling assets to pay down some of its substantial debt burden. The media group has €3.241bn in net debt.
