Time Warner makes fresh Endemol bid

ROME -- Time Warner has renewed its interest for Endemol with a $1.3 billion all-cash offer, as the indebted Dutch content giant enters final countdown phase to reach an agreement with lenders. In a statement, Endemol confirmed it has received "a revised offer from TW," and has "passed it on to the lenders." "We remain focused on our discussions with lenders and these have entered the final stages. We are confident that a solution that puts the company on a firm financial footing for the future is now imminent," the statement added. TW has now proposed an all-cash, non-binding offer, rather than the mixture of cash and debt that comprised their previous offer for the same amount. But according to sources, this new TW offer is not likely to get much more traction with Endemol than their first offer. "The focus for Endemol remains on capital restructuring," said someone with close knowledge of the situation. They noted that Endemol is outperforming budget for the first time in five years, so has sound prospects as an independent entity, and is not planning to initiate an auction process. That said, lenders may instead opt for the Time Warner cash offer. Mediaset, the Italo broadcasting giant controlled by Silvio Berlusconi, which already owns one-third of Endemol and has made a rival offer for a majority stake, had no immediate comment on Monday. In 2007, a consortium comprising Mediaset, Goldman Sachs Capital Partners and Cyrte, the investment company in which Endemol co-founder John de Mol is a minority shareholder, paid some $3.5 billion for Telefonica's controlling stake in Endemol in a three-way split. But they largely used leveraged loans that now weigh heavily on the Dutch unscripted TV giant best known for "Big Brother," whose other formats include "Deal or No Deal" and "Extreme Makeover: Home Edition." Endemol is burdened by some $3.7 billion in debt to creditors, which include private equity funds Apollo Management, Centerbridge and Providence Equity Partners. The extended deadline for this capital restructuring is reportedly tomorrow, Dec. 13. Mediaset and Italian equity fund Clessidra have reportedly offered to inject $268 million in Endemol to raise their current 33% stake to 51%, with lenders owning the remaining minority interests. Mediaset has reportedly warned Endemol that the outcome of the restructure could affect the companies' relationship, telling Endemol that it intended to renegotiate all existing agreements, as well. Contact Nick Vivarelli at nvivarelli@gmail.com