US investor Haim Saban's planned Euros 2bn takeover of bankrupt KirchMedia is off.
In a joint declaration, KirchMedia's insolvency administrator and the Saban Capital Group "agreed to amicably annul the concluded contracts on the sale of the majority of ProSiebenSat.1 Media AG and the sale of the film rights trade."
At the same time, KirchMedia's creditor banks - HypoVereinsbank, Commerzbank, BayernLB have approved a so-called "plan B" under which KirchMedia will manage the two businesses alongside the banks.
Last week saw growing speculation that the deal with Saban might not come to anything and he had been given ten working days to come up with a plan to finance his proposed Euros 525m acquisition of ProSiebenSat.1 and agree terms for repaying Kirch's vast film library debt.
Saban travelled to Munich on Wednesday for talks with insolvency administrator Michael Jaffe, but a source close to the negotiations told business daily Handelsblatt that "there were still too many open issues, too many complex subjects."
On the news of deal's collapse, German press reported that speculation had grown that Saban was unable to present a viable financing concept and that he had not found additional investors to fund the deal.
ProSiebenSat.1's shares dropped by almost 9% to Euro 4.71 on the news of Saban's withdrawal.