Telefonica set to launch Endemol sale - FT

AMSTERDAM, Feb 9 (Reuters) Spanish telecoms group Telefonica is set to formally launch the sales process for Dutch television production company Endemol, the Financial Times said on Friday.

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

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

Telefonica, which paid 5.5 billion euros (.14 billion) for the company in 2000, has said it would like to sell its remaining holding because 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 be an aggressive suitor, people familiar with the situation said on Thursday.

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

REUTERS PV GC1419