Kirch Set to Offer TV Stake to Murdoch

German media group Kirch is to offer Rupert Murdoch's News Corp a "substantial" stake in Germany's biggest TV business to pay off debts to the Australian-born businessman, the Financial Times has reported.

Kirch's attempts to build a pay-TV platform in Germany has left the company seeking funds to cover losses and meet an obligation to pay one billion pounds cash to Murdoch for his stake in TV business Premiere.

Kirch management has held internal discussions about a deal that would give Murdoch "significantly increased influence" over flagship TV business KirchMedia, its core rights and broadcasting business, the FT reported.

Kirch is set to approach Murdoch about a deal by the end of this week, the newspaper said. KirchMedia is set to merge with broadcaster ProSiebenSat.1 by June. People close to the deal say it may be postponed due to the financial squeeze on Kirch.

Additionally, Kirch advisers are set to seek offers for Kirch's 58 percent stake in SLEC - the company that controls broadcasting and marketing rights to Kirch's Formula One motor racing business - by the end of the week, the FT reported.