Kirch says F1 sale would be bitter option

FRANKFURT, Feb 23 Reuters reported that Leo Kirch, owner of debt-stricken KirchGruppe, was quoted on Saturday as saying it would be a bitter option to give up his stake in Formula One motor racing to help the German media firm to come to terms with its debts.

``The purchase of Formula One... was a peak in my career so far. Having to give it up would be really bitter,'' Leo Kirch said in a rare interview with German weekly magazine Der Spiegel released ahead of publication on Monday.

KirchGruppe KRCH.UL, which is struggling under 6.5 billion euros ($5.7 billion) of liabilities amassed during an acquisition and pay-TV spree, must find billions to pay back loans and meet put options held by shareholders.

The most daunting put option is one of 1.3 billion euros that Rupert Murdoch's BSkyB (BSY.L) has said it will exercise on its stake in KirchPayTV.

``Murdoch is a shark. Sharks have sharp teeth. Anyone who can't swim with them shouldn't get in the pool with them,'' Kirch told Der Spiegel.

``I can't be angry with Rupert, even if he wants to eat me. That's the way he is... If it should become necessary I will offer him anything.''

Speaking in the same interview, Kirch managing director Dieter Hahn said Kirch had underestimated the aggressiveness with which Murdoch is pushing into the German market but declined to comment on his strategy to keep Murdoch out of Germany.

Hahn also said selling Formula One would be the last alternative.

``It would really hurt us if we had to give up Formula One because it is part of the basic idea of our company, unlike our stakes in Springer (SPRGn.DE) or in Spanish broadcaster Telecinco. The sale is one alternative, but the last one,'' Hahn said.

Kirch acquired a 58 percent stake in Formula One commercial rights holder SLEC for 1.6 billion euros last year.

Earlier this week, Bernie Ecclestone, former owner of the racing car business, said he had not been offered the rights to Grand Prix motor racing nor had he bid for them.

Kirch's debt woes forced its KirchMedia arm to put a planned merger with German broadcaster ProSieben Sat.1 Media AG (PSMG-p.DE) on ice on Friday, as Kirch battled to keep his empire afloat.

ProSieben shares jumped 28 percent after the broadcaster avoided being sucked into Kirch's debt hole -- and on market relief that Leo Kirch had also agreed to hand some control over the broadcaster to minority shareholders.

The two companies had planned a merger in June to tap fresh funds by folding privately owned KirchMedia into cash-generative ProSieben and listing the merged company.