STOCKS NEWS EUROPE-Premiere rises on renewed M&A speculation

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10:19GMT 04Nov2008-Premiere up as M&A speculation continues

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Shares in Premiere (PREGn.DE) rise 23 percent, putting them at the top of German midcaps .MDAXI, after a media report over the weekend fuels speculation that Rupert Murdoch's News Corp NWSa.N may soon bid for the German pay TV provider.

"This is really a continuation of takeover rumours that have flared up every now and then, ever since News Corp began buying stake in Premiere," a trader says.

A second Frankfurt-based trader points to a report in Sydney Morning Herald reigniting M&A speculation.

According to the report, Murdoch told analyst at a meeting in Sydney that News Corp is carrying out due diligence on the German cable TV operator.

News Corp says, however, it could not comment on the report. Murdoch's company has built up a 25 percent stake in Premiere this year and appointed News Corp's chief financial officer for Europe and Asia Mark Williams as CEO in a move to get the company back on track and in a step which many see as preparations for a takeover.