Premiere Shares Up on BaFin Ruling

MUNICH: The share price at Premiere was up today following a ruling that News Corporation does not need to take full control of the German pay-TV platform should its shareholding reach the 30-percent mark.

Under local law, an investor in a German company with a 30-percent or greater stake must make an offer to minority shareholders for the remaining holdings. The German Federal Financial Supervisory Authority, also known as BaFin, has granted News Corporation an exemption, allowing it to up its stake without taking full ownership of Premiere. The move is an important one for the cash-strapped Premiere as it works to repay its debt. News Corp. aims to return the platform to profitability by 2011. The company owned 25.01-percent of Premiere prior to a recent capital increase. The next step of the capital increase, slated to raise about 411.6 million euros, will go to shareholders for approval February 26.