The World: Berlin - Bertelsmann buys back stake in bid to remain private

Bertelsmann AG, Europe's largest media company by revenue, is buying out a minor investor for EUR4.5 billion to prevent an unwanted initial public offer.

The company is buying back the 25.1 per cent equity stake held by the Belgian investment company Groupe Bruxelles Lambert (GBL).

Bertelsmann, which controls the other 74.9 per cent of the business, is auctioning off BMG Music Publishing in a bid to finance the deal, as well as taking out a bridge loan with a number of banks.

In January, GBL announced that it planned to sell its stake on the stock exchange early next year but Bertelsmann is keen to keep the company private.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus