Sunday March 19th, 2000

German media production and marketing group EM.TV & Merchandising AG is about to take a 50 percent stake in Formula One motor racing, the Sunday Business newspaper said.

The newspaper said the company would pay 1.2 billion pounds ($1.9 billion) for the stake and that it would share control of grand prix racing with the sport's promoter, Bernie Ecclestone.

EM.TV grabbed the spotlight in February when it announced it was paying $680 million in cash and stock to buy The Jim Henson Company, maker of the Muppets and children's puppet show Sesame Street.

The newspaper said EM.TV would buy all the shares owned by U.S. investment group Hellman & Friedman, which holds 37.5 percent, and Morgan Grenfell Private Equity, which holds 12.5 percent.

Ecclestone will hold the remaining 50 percent but the newspaper said Ecclestone was in talks to sell EM.TV a controlling stake. The newspaper said the deal would be completed next week.