BERLIN (Reuters) -German broadcaster ProSiebenSat.1 said it had begun the process of selling two e-commerce businesses, a key demand from top investor MFE-MediaForEurope, but reiterated an appeal to shareholders to oppose a complete break-up.
MFE, which holds nearly 30% of ProSieben's shares, wants the company to shed all its e-commerce and dating businesses in order to focus on television, in a split that could eventually lead to a buyout approach for the German group's TV business.
ProSieben shareholders are set to vote on MFE's plan at the German company's annual general meeting (AGM) on April 30, with one investor - Amber Capital - telling Reuters it would back the strategy shift proposed by MFE.
ProSieben's management has fiercely opposed MFE's break-up proposals, which CEO Bert Habets said late on Wednesday "would restrict our options and create no value for all shareholders".
In a statement published online, Habets added, "We have improved the profitability of our e-commerce businesses and initiated a sale process with banks for two of our largest assets, Verivox and Flaconi, to maximise value."
ProSieben shares were up 2.7% at 0952 GMT.
Flaconi is an online retailer of beauty products and Verivox is a price comparison website.
MFE would not comment directly on the planned sale of the businesses, referring instead to its previous statements.
This week, the media company had said ProSiebenSat.1 management could continue to try selling the non-core business and take the dating business public.
ProSieben said it was notified on Wednesday of a statement from MFE.
"Depending on market conditions, the share price and possible strategic options and subject to regulatory approvals, it is intended to acquire further voting rights in ProSiebenSat.1 Media SE within the next twelve months by purchase or otherwise," MFE said in the statement.
The DWS lobby group, which represents private shareholders, urged investors to oppose MFE's plans at the AGM, saying in a statement the proposals would be detrimental to ProSieben.
"It looks as if the major investor MFE wants to create a kind of bad bank in which companies are brought in in order to sell them quickly," said DSW Vice President Daniela Bergdolt.
"However, this approach will depress the prices of the investments and destroy value for all shareholders."