Endemol loan companies reject TW bid

ROME -- Rejecting Time Warner's latest bid, Endemol loan companies have because of the Nederlander content giant a waiver extension until Feb. Hedge funds and banks now appear poised to seize control of Endemol, as the entire process of restructuring the "Your Government" maker's $3.7 billion debt continues. Sources near to the discussions have confirmed an Endemol debt waiver, the 3rd extension since September, for Royal Bank of Scotland and Lehman Siblings, a couple of the primary loan companies, in addition to by investors Cyrte and Goldman Sachs. Time Warner on Monday had restored its curiosity about Endemol having a $1.3 billion cash offer, which loan companies have declined. Endemol didn't discuss reviews that the debt-for-equity swap has become going ahead, which may slash some $2.6 billion in financial loans and hands management control to the loan companies. Most critical results of that scenario is the fact that Mediaset, the Italo broadcasting giant controlled by Silvio Berlusconi, which is the owner of one-third of Endemol and it has made a deal for any majority stake, would see its 33% stake greatly diluted to the stage of no more even becoming an Endemol board member. Mediaset and Italian equity fund Clessidra have apparently provided to inject a lot more than $500 million in Endemol to boost their 33% stake to 51%, with loan companies possessing the minority interest. Inside the approaching two-month period it's possible that Mediaset may up its offer and negotiate with loan companies. Or rather choose to reconfigure its role in Endemol like a mere industrial partner. There is no comment from Mediaset. In 2007, a consortium composed of Mediaset, Goldman Sachs Capital Partners and Cyrte, an investment company by which Endemol co-founder John p Mol is really a minority investor, compensated $3.5 billion for Telefonica's controlling stake in Endemol inside a three-way split. However they largely used utilized financial loans that now weigh heavily around the unscripted TV giant, whose formats likewise incorporate "Deal or No Deal" and "Extreme Transformation: Home Edition." Contact Nick Vivarelli at nvivarelli@gmail.com