Murdoch eyes up Kirch group

Kirch is Germany's biggest pay TV provider and currently owns 58 per cent of F1 supremo Bernie Ecclestone's holding company SLEC with an option to buy a further 16.5 percent from fellow German media company EMTV.

However, Murdoch, who owns media giant News Corporation and British pay TV network Sky, is believed to be interested in using an option on Kirch's pay TV business to take control of the company.

"Rupert has really got the hots for the whole of Kirch right now," an insider told British newspaper the Financial Times.

Kirch's controlling stake in F1 has been instrumental in the formation of a company GPWC, set up by five of the manufacturers involved in grand prix racing, to run a rival series to the world championship.

The manfacturers, namely Fiat (Ferrari), Renault, BMW, Ford (Jaguar) and Mercedes-Benz are unhappy with an outside party having a controlling stake in the sport and want a bigger stake in the revenue generated by the sale of television rights.

Should Murdoch take control of Kirch, he would become one the most powerful man in broadcasting in Europe. The move is an about face by the Australian-born media mogul, who was reported as trying to sell the 22 percent stake in Kirch, which he already owns, last month. The deal is not expected to take shape until late next year.