EM.TV to be probed over finances

NEWS Earlier this month, the company released a pre-tax profit warning of DM50m (£15.4m) for 2000, compared to a forecast of DM525m (£161.9m)profit, issued only weeks previously. The respective figure for 1999 was DM153m (£47.2m) profit. Shareholders, outraged at the gulf between the figures, called on Munich officials to act upon the firm for not releasing accurate financial discrepancy information sooner. With debts running into E1bn (£603m) following the purchase of the Jim Henson Company (producer of the Muppets) and half the F1 motor racing broadcast and merchandise rights, chief executive Thomas Haffa was last week forced to sell holdings in the firm. A 17 per cent stake in the company was released to German media barren Leo Kirch, who also acquired part of the grand prix rights owned by EM.TV for E624.8m (£376.8m). Further strategic partner deals are expected and analysts speculate EM.TV will become subject to rival takeover offers. Shares in the group opened today at E6.40 (£3.86), a long way short of the E119.5 (£72.1) February high.