World: Munich - Bidding war begins to take over ProSiebenSat.1

A group of media conglomerates and venture capital companies are set to enter a bidding war to acquire the German broadcaster ProSiebenSat.1.

The companies, which include the US investment bank Goldman Sachs, the private equity group Apax, News Corporation and the venture capitalists Permira and Blackstone, approached the German commercial TV broadcaster last week after Axel Springer was forced to withdraw its EUR4.2 billion bid.

The proposed acquisition was blocked after Germany's Federal Cartel Office raised concerns that the combined deal would give the German publishing group too much power in the market.

ProSiebenSat.1 has instructed its advisers, JP Morgan and Lehmann Brothers, to conduct a review of its options leading to a formal auction.