Spain's Prisa announces end to TV merger plan
Spanish media giant Prisa, owner of leading daily El Pais, announced that negotiations with rival Imagina on the merger of their television operations had broken down.Madrid - Spanish media giant Prisa, owner of leading daily El Pais, announced that negotiations with rival Imagina on the merger of their television operations had broken down.
The two announced in June they had given themselves a month to sign a merger deal involving their television operations.
"Prisa and Imagina have decided not to renew the agreement signed on 3 June. As a result, the exclusivity clause signed by the two sides to continue the negotiations is no longer valid," Prisa said.
"Prisa will continue to look at other opportunities with other television channels."
The Spanish business daily Expansion blamed the breakdown on differences of opinion over the respective share values of the two groups.
Prisa shares plunged 12.07 percent to EUR 3.46 on the Madrid stock market early afternoon in reaction to the news, in a relatively stable market.
Prisa runs the television channel Cuatro while Imagina holds another, La Sexta.
The government in February passed a law which eliminated a 5.0-percent limit on cross shareholdings at television broadcasters.
The law is intended to ease sector mergers at a time when Spain's media is being hammered by the country's worst recession for more than five decades, with advertising revenues dropping sharply.
AFP / Expatica