News Corp interested in boosting stake in Premiere

NEW YORK (Reuters) - Rupert Murdoch's News Corp (NWSa.N: Quote, Profile, Research, Stock Buzz) is interested in boosting its stake in Premiere AG (PREGn.DE: Quote, Profile, Research, Stock Buzz) to about 23 percent ahead of the German pay-television company's annual meeting in June, a source close to the media conglomerate said on Monday.

The news, first reported by Germany's Der Spiegel, sent shares of Premiere up 2.4 percent to 13.67 euros.

News Corp, which as of last month held a 19.99 percent stake in Premiere, declined to comment.

The company's interest in Europe's biggest TV market stems in part from an opportunity -- with News Corp's financial fire power -- to secure the rights to air premier league soccer games live in Germany, company watchers have said, repeating a time-honored Murdoch strategy in other regions.

Although Premiere offers channels with Hollywood movies, documentaries, drama and pornography, German viewers have largely been reluctant to pay for television unless soccer games are shown.

New York-based News Corp, which owns the 20th Century Fox studios, the MySpace Internet social network and the London Times newspaper, raised its stake in Premiere to 19.9 percent in February.

At the time, a source familiar with the plans said the company was comfortable with its position, but would continue to evaluate the situation.

Murdoch's initial 14.58 percent stake purchase in January set off speculation that the world's most famous media mogul aimed to take over Germany's biggest pay-television provider.

At 23 percent, News Corp would hold a majority stake for Premiere's June annual meeting, based on previous attendance, according to the report.