The largest pay-TV company in Germany, Premiere AG, was the latest target of Rupert Murdoch and News Corp. (NWS-A), as they acquired a 14.6 percent stake in the company for $421 million.
"We see enormous potential for growth in Germany and believe the time is right to invest in its foremost pay-TV business, Premiere," Murdoch said in the statement.
German cable company Unity Media GmbH owned the shares, which were bought at a 37 percent premium over their January 4 close by News Corp., which paid 17.50 euros a share for the stake. Holding the shares for Unity Media were Pictet & Cie, a Swiss Bank.
One person close to the deal said News Corp. has no immediate plans to buy any more of Premiere, while others think they won't stop where they are.
"I don't think they'll stop at the almost 15 percent," said Michael Bahlmann, an analyst at M.M. Warburg in Hamburg
Germany is the largest economy in Europe.
Comment Preview