MFE ups its offer as Mediaset España takeover falters

MediaForEurope (MFE), the company formerly known as Mediaset, has improved the terms of its public offer for the shares of Mediaset España, the Spanish broadcaster subsidiary it is attempting to consolidate as part of its plan to build a cross-border European media entity.

MFE has improved the cash element of its offer for Mediaset España shares. According to documents submitted to Spanish regulator the CNMV, the company is now offering €4.32 for every two Mediaset España shares, or €2.16 a share, compared with the €1.86 in cash per share offered previously.

MFE has maintained the portion of the offer comprising its own shares.

The original offer had met with widespread rejection by Mediaset España shareholders, leading to a decline in the broadcaster’s share price from the time the offer was made. News of the improved offer led to the share price rising yesterday.

MFE is attempting to acquire the 44.31% of Mediaset España’s shares that it does not already own in order to consolidate the company. The offer is conditional of meeting a threshold of 66.15% acceptance, equivalent to 29.31% of Mediaset España’s overall capital.

Mediaset España last month reported a very modest increase in revenues and a significant drop in earnings for its first quarter as costs mounted and the group’s share of a muted advertising market failed to grow in line with rival broadcaster Atresmedia.