Prisa starts legal action against Portuguese takeover law |
|
|
|
Published
:
Fri, 26 Jan 2007 08:19
|
MADRID (AFX) - Promotora de Informaciones SA said it has begun legal proceedings against the Portuguese government and the Portuguese stock market regulator over a new law which is expected to oblige the Spanish company to make a second full bid for Grupo Media Capital SGPS.In a statement, Prisa said that the law due to come in force contravenes European regulation and the Portuguese constitution.According to the regulation, the broadcaster controls over 33 pct of Media Capital because of previous agreements with chairman Miguel Pais do Amaral, who holds 5.58 pct and his ally Nicolas Berggruen, who holds 6.42 pct.The agreements imply that Prisa's controls around 45 pct of Media Capital, which obliges the company to launch full bid under the new law.The current subscription period for Prisa's voluntary full 7.40 eur per share bid for the Portuguese media company closed on February 5, well below Media Capital's current trading range.Speaking in Davos on Wednesday, Prisa CEO Juan Luis Cebrian said he is concerned by the price of the second bid being based on market prices in last six months, which he said are distorted by low levels of speculative trading in Media Capital shares.afxmadrid@afxnews.comped/jg/jfrCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
|
|
|
|
Print this Story
Prisa must launch 2nd bid for Media Capital if stake passes 33.33 pct - report 