Telefonica set to launch Endemol sale: FT

Amstaerdam, Feb 9: Spanish telecoms group Telefonica is set toformally launch the sales process for Dutch television productioncompany Endemol, the Financial Times said on Friday.

The newspaper said Telefonica was likely to appoint investmentbank Merrill Lynch to handle the sale of its stake in Endemol, which isbehind TV hits ''Big Brother'' and ''Fear Factor''.

Shares in Netherlands-based Endemol has been trading publiclysince November 2005 after Telefonica sold 22.3 percent of its shares.

Telefonica, which paid 5.5 billion euros (.14 billion) for thecompany in 2000, has said it would like to sell its remaining holdingbecause it is not central to its telecom operations.

A source close to the negotiations told Reuters last month Telefonica expected to sell the stake in the first quarter.

There has been widespread speculation in the market about who might be interested in buying the Dutch producer. News Corp.

and Disney were singled out last month in media reports, but both companies quickly denied they were looking at a bid.

British broadcaster ITV is considering a bid but is unlikely to bean aggressive suitor, people familiar with the situation said onThursday.

Private equity firms and Endemol co-founder John de Mol are considered by analysts to be the most likely buyers.

Reuters>