Premiere shares rise on regulators' decision
News Corp. will not have to make buyout offerCOLOGNE, Germany -- Shares in Premiere shot up Monday after a decision by stock market regulators that bodes well for News Corp.'s planned restructuring of the troubled German pay TV operator.
Premiere shares were up nearly 10% at one point in trading Monday and, close to close, were still 6% stronger.
Stock market authority BaFin granted an exemption for News Corp., Premiere's largest shareholder, meaning the company will not be required to make a buyout offer to minority shareholders should its Premiere stake exceed 30%.
The exemption to the normal buyout rule was one of News Corp.'s conditions for carrying out its planned recapitalization program.
If all goes according to plan, News Corp. hopes to bring Premiere back to profitability by 2011.