Shares in publishing company Axel Springer rallied 5% amid media reports that it's in merger talks with German broadcaster ProSiebenSat.1.According to the Wall Street Journal, the two companies' combined market capitalisation would be around €14.4bn.The WSJ cited people familiar with the matter as saying that negotiations remain at an early stage and could still break down. They added that a deal would face several issues, including regulatory scrutiny.Morgan Stanley said that such a deal would have some merits, as the company would be able to extract synergies in traditional media."However, the surprising nature of the news, uncertainty on the anti-trust process and how the deal would be structured (Springer family retaining some form of control) as well as the possible large equity issuance on ProSieben's side create some uncertainty," said Morgan Stanley.At 0939 BST, shares in ProSiebenSat were up 1.2% at €44.95.
Prosiebensat1 M (0QG9)