OCTOBER 19, 2000
EM.TV sinks even lower
SHARES in the German media company EM.TV have not bounced back as some analysts expected would happen after last week's crash which wiped 30% off the value of the company. The shares did recover in the early part of the week but then slumped again reaching a low point of 31.51 Euros, which is just under $27. This meant that the value of the company dropped to under $3.5bn, which is just about half what it was worth a week ago.
The failure to recover may be because investors are still not happy with EM.TV boss Thomas Haffa's investment in Formula 1 through his 50% ownership of the Ecclestone Family company SLEC. Haffa is in talks to sell his shares to a consortium of car manufacturers but they are looking for the lowest possible price and for assurances from Bernie Ecclestone about the way the sport is administered. Ecclestone is in no position to do very much about the way in which the FIA applies the rules, at least not in theory, although his influence would not doubt make a difference.
Haffa paid an estimated $1.6bn for the shares in F1 although the investment will only bring in around 30% of the EM.TV revenues this year.
EM.TV's share price is expected to bounce back up the moment a deal is struck as it will signal that Haffa has returned to his successful roots as a marketeer of cartoons.
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