MFE weighing raising offer for ProSieben in response to PPF, source says

MILAN (Reuters) -MFE-MediaForEurope, the TV broadcaster controlled by Italy's Berlusconi family, is considering raising its offer for Germany's ProSiebenSat.1, a source close to the matter said on Wednesday.

The move, one of many options being considered on which no decision has yet been made, would be in response to Czech investment group PPF saying this week it would raise its stake in the German broadcaster, the source said.

MFE declined to comment.

MFE, which has commercial TV operations in Italy and Spain, made a low-ball bid for ProSieben in March as part of its plan to create a pan-European broadcaster.

Analysts say PPF's move complicates MFE's efforts to tighten its grip on ProSieben. The German company, which wants to remain independent, has welcomed PPF's decision.

MFE held a board meeting on Tuesday, after which a source close to the company said it remained committed to strengthening its role as the leading investor in Prosieben.

PPF, the second-biggest shareholder with 14.94%, said on Monday it would buy more shares at 7 euros each, to acquire a stake of up to 29.99%. MFE owns 30.14% of ProSieben.

PPF is offering a 17% premium over Friday's closing price and a 21% premium to the price implied by MFE's cash-and-share bid.

(Reporting by Elvira Pollina, writing by Alvise Armellini, editing by Cristina Carlevaro and Emelia Sithole-Matarise)