Cologne - A German media group said Sunday it was acquiring a one-quarter stake in a major Israeli daily newspaper, Haaretz, in an investment worth 25 million euros (36 million dollars).
Haaretz, which is editorally left of centre and is Israel's third-biggest daily in circulation terms, described the alliance with family-controlled M DuMont Schauberg as based on 'shared values.'
DuMont Schauberg, which publishes newspapers in the Cologne area of Germany, recently began an expansion by acquiring a majority stake in a loss-making, left-of-centre German national newspaper, the Frankfurter Rundschau.
Analysts said any German ownership of an enterprise with influence on Israeli political life would have drawn enormous protest in Israel not many years ago.
In its first investment abroad, DuMont Schauberg is acquiring 25 per cent of the Haaretz group of publishing companies including weeklies and a printing works, according to a joint statement.
Amos Schocken, whose grandfather Salman acquired Haaretz 71 years ago, not long after its foundation in 1919, said the reason the new investor had joined the business was that Haaretz had development potential but lacked capital of its own to pursue this.
The Haaretz statement described DuMont Schauberg as a 'partner that has a thorough understanding of the public responsibility of this business and that shares our values.'
It added that a former Israeli ambassador to Germany, Avi Primor, had helped to cement the arrangement and would obtain a seat on Haaretz Group's board representing the German investor.
DuMont Schauberg is controlled by descendants of its founder families. With the German newspaper and magazine business generally stagnating, most German publishing groups have sought expansion in eastern Europe, but most leading titles there have already been sold.
