German broadcaster ProSiebensat.1 has rejected a bid put forward by MFE-MediaForEurope to split up the company.
ADVERTISEMENTOn Wednesday, it was reported by Reuters that ProSiebensat.1 called on its shareholders to vote down its top investors' proposals at the annual general meeting next month.
MFE, which operates commercial TV businesses in Italy and Spain, is controlled by the family of the late former Italian Prime Minister Silvio Berlusconi.
The company is aiming to spin off ProSieben's e-commerce and dating assets from the group's core TV operations, Reuters said.
"In the opinion of the executive board and the supervisory board, a split-up ... lies in the unique interest of MFE, but not in the best interests of all other shareholders," ProSieben said in a statement.
The split would result in a significant increase in the financial leverage of ProSiebenSat.1 "and thus make strategic acquisitions just as impossible as a customary dividend policy", the statement also said.
Meanwhile, MFE said in a statement on its website: "The purpose of the proposed resolution is to accelerate the process of separating and refocusing the company's various business areas.
"Whilst the ProSiebenSat.1 Executive Board has repeatedly stated its intention to refocus on the Entertainment Business, no material progress has been made to date. By presenting this motion, MFE intends to offer the executive board a solution to decisively execute its strategy and unlock the full value of the businesses for all shareholders."
ProSieben's AGM is scheduled for April 30.
