ProSiebenSat1 Stock: Takeover Drama Intensifies After Rejection

The corporate leadership of ProSiebenSat.1 has firmly rejected MediaForEurope's (MFE) takeover offer, deeming it financially inadequate at approximately €5.75 per share. This decision, however, didn't dampen investor enthusiasm as the stock climbed 2.3% to €7.24 following the announcement. The Berlusconi family-controlled MFE had stated their offer wasn't aimed at acquiring a majority stake but rather securing flexibility for future stock purchases. Meanwhile, speculation swirls around a potentially improved offer, with Italian newspaper "Il Messagero" reporting MFE might raise its bid to €7 per share—matching the recent offer from fellow major shareholder PPF, who seeks to double its influence in the German media company.

Market Skepticism Remains

Despite the takeover drama, analysts maintain reserved expectations about further developments. Warburg Research has adjusted its target price upward from €6.50 to €7, maintaining a "Hold" rating based on first-quarter figures and ongoing debt reduction progress. However, experts doubt any bidder will exceed the €7 threshold, especially considering only modest recovery forecasts for the crucial advertising business in the second half of the year. The struggle for control over ProSiebenSat.1's future direction continues, with the €7 mark potentially representing the ceiling in the current bidding contest.

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Source StockWorld