Kirch, the German media group in the throes of insolvency, looks likely to melt down altogether thanks to Rupert Murdoch's BSkyB.

BSkyB has a 22% stake in the KirchPayTV operation, which sought protection from its creditors earlier this month.

But now it says it is selling its stake back to Taurus Holding, the holding company which has acted as the fulcrum for the Kirch Group, ruling out speculation that it might run the TV operation itself.

The insolvency means it can redeem its stake before the deal's original 1 October threshold.

Over the edge

There is no way it will receive the full 1.3bn euros at which it prices its holding. Kirch has priced it at 1.7bn.

Even so, industry sources have told Reuters news agency that it is likely to push Taurus Holding into bankruptcy.

If that happens, it will join not only KirchPayTV, which ran through billions of euros in an abortive attempt to sell the German public on pay-per-view television, but also KirchMedia, which holds most of the group's rights.

The holding company's 40% stake in rival media group Springer Verlag could then pass into the hands of Deutsche Bank, whose 720m euro loan to Kirch was secured on it.