Deutsche Bank has acquired a 40% stake in Axel Springer Verlag, Europe’s largest newspaper publisher, for E667.3 million. The stake was owned by Leo Kirch, the fallen head of the KirchGruppe media empire.
The Springer shares were collateral for a loan which Deutsche Bank had extended to the Kirch group. The collateral was offered for sale because the Kirch group failed to repay the loan.
Deutsche Bank acquired the 40% stake itself in an auction held in yesterday in Frankfurt by the bank (see Axel Springer Stake Up For Sale). However, the group intends to sell its newly-acquired holding in parts or as a whole as soon as adequate offers are received.
The sale of one quarter of the stake will be sold on swiftly to Friede Springer, Axel Springer’s largest shareholder; negotiations are understood to be merely a formality.
Temporary investment Deutsche Bank says that it does not intend to use the voting rights of its temporary financial investment and is hoping to be excused from obligations under the German Financial Supervisory Authority to make a takeover bid for the remaining shares.
