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Munich (pte036/26.05.2003/15:34) - The sale of Leo Kirch's former media empire to US billionaire Haim Saban may be in jeopardy. Financial details surrounding the transaction and the repayment of the Kirch Group's debts could act as stumbling blocks for the takeover, reports the Sueddeutsche Zeitung (SZ) http://www.sueddeutsche.de today.
According to SZ, creditor banks have drafted a "plan B" which does not include Saban. In this scheme, the ProSiebenSat.1 television and film business would be run for another three years and then put up for sale again.
SZ further calls Saban an "uncomfortable" partner for the creditor banks Bayerische Landesbank, HypoVereinsbank, DZ and Commerzbank, who do not approve of his business concepts. Saban has already drafted three plans for the group's film business. While the creditors are concerned about getting their money back quickly, Saban appears more inclined to invest in the business. Saban is also against the banks' plan to cut down on ProSiebenSat.1's 425m-euro overdraft limit. In general, SZ observes that the banks are beginning to doubt the seriousness of Saban's offer.
Saban has called the banks' reaction "typical of the last phase" of negotiations in which each party plays a poker game for every cent.
The banks have, however, already set an ultimatum, writes SZ: If the contractual conditions are not fulfilled by the end of May, then "plan B" goes into effect. The sale of KirchMedia's http://www.kirchmedia.de sports rights business has provided a financial cushion for investments. A decision on the future of the deal is expected to be made by the end of the week.
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