Kirch Hopes to Sell Assets for 1bn Euros

Kirch Gruppe, owner of 75 percent of the shares in Formula One holding company SLEC, hopes to announce the disposal of more than 1 billion euros (618 million pounds) worth of assets this week aimed at putting it on a firmer footing, the Financial Times has reported.

A top executive of German auto group DaimlerChrysler said last week that Formula One carmakers aiming to set up their own racing series had no interest in more talks with Kirch. The carmakers last year created an organisation after Kirch acquired a majority stake in SLEC, amid fears that races might be shown only on Kirch's pay TV operation.

To stave off bankruptcy fears at Germany's biggest TV broadcaster, Kirch executives are understood to have found a financial buyer for its 40 percent stake in the Axel Springer publishing group. The executives were at an "advanced stage" in their discussions on Sunday night. The company hopes to announce the deal this week, though one executive said "no contracts have yet been signed", the FT reported.

The 1 billion euros-plus sale of the Axel Springer stake is set to be central to a broader deal to get further funds, the newspaper said. The Bavaria-based media group has amassed debts of some $5 billion due to losses at its pay-television business and may have to find huge amounts to repay debt and cover options to banks and media partners this year.

Deutsche Bank Chief Executive Rolf Breuer, who has talked to German Chancellor Gerhard Schroeder about Kirch concerns, is understood to have flown to Munich over the weekend to talk to Leo Kirch, the group's founder, the FT reported.

The FT said Deutsche Bank is understood to have been working on a framework solution involving many German banks. Deutsche Bank declined to comment to the newspaper. But Kirch executives hope to show they need not resort to solutions being proposed by politicians, bankers and rival groups, the FT said.

People working on Kirch's planned deal on Sunday told the Financial Times: "We have always said we would find our own solution. This is going to be done Mr Kirch's way."