Kirch Investors Still Seeking Solution

Italy's Mediaset and its controlling investor Fininvest said on Friday that they and other minority shareholders in Kirch were still seeking a way to keep the crippled German media group operating.

In a joint statement, the two Italian companies said a proposal by the minority shareholders for an 800 million-euro capital increase - which would be open to Kirch's creditor banks - had been blocked by the group's majority shareholders.

A separate plan for a capital increase proposed by the Kirch group had also been rejected by shareholders in Munich, the statement said.

"The minority shareholders confirm their continued attempts to find and put into action, in agreement with the banks and Kirch group, the initiatives needed to allow KirchMedia to continue its operations," the statement said.

Kirch had been set to file for insolvency as talks in Munich and Los Angeles between creditors and investors failed to agree a rescue plan for its core business, KirchMedia, sources said earlier on Friday.

Fininvest - the family holding of Italian Prime Minister Silvio Berlusconi - and Mediaset hold between them just under five percent of KirchMedia.