Commerzbank, Columbia and WAZ join for KirchMedia bid

The mainstay of Leo Kirch's debt-crippled German media empire, KirchMedia, could be sold this week to a consortium including Germany's Commerzbank and the publisher WAZ Gruppe, and Sony Corp's Columbia TriStar, according to weekend reports.

Speculation mounted that the consortium was close to sealing a bid for the insolvent KirchMedia, which is in interim administration, beating off interest from tens of other media groups and venture capital companies.

KirchMedia is the most attractive part ofKirch Group, which is being unbundled after mounting debts and losses made the future of Germany's second-biggest media company unviable. As well as owning television rights to the current and 2006 World Cups, KirchMedia holds a 52 per cent stake in ProSiebenSat1, the country's top commercial broadcaster.

Industry sources said a deal to buy KirchMedia would see Commerzbank and WAZ Gruppe each take a 40 per cent stake, and Columbia TriStar 20 per cent. The parties met the head of KirchMedia, Wolfgang van Betteray, other creditor banks and the insolvency administrator last Thursday to discuss the proposal.

The German government had previously indicated its desire for a "German solution".

Kirch Holding, the parent company, which has more than 70 subsidiaries, has total debts of about $5.7bn (£4bn).