The founder of the bankrupt media giant Kirch has been ordered to surrender his 40% stake in the publisher Axel Springer.

Leo Kirch had until 20 September to sell the stake and repay a 720m euro (�454.5m; $705.3m) loan to Deutsche Bank.

When he failed to meet the deadline, a court in Munich ruled that he had to give the publishing stake to Deutsche Bank.

Mr Kirch's media empire collapsed under a mountain of debt earlier this year.

He wanted the court to give him until the end of the month to sell the stake in Springer, which publishes titles including Bild and Die Welt.

Although Deutsche Bank now controls the stake, it has said it will not stand in the way of any deal that would allow it to retrieve its money.

Reviving the business

The Swiss media group Ringier confirmed on Friday that it was considering a merger with Springer.

If a deal went ahead the enlarged company would take control of the 40% stake now in the hands of the bank.

Neither of the publishers would comment.

Kirch group's various businesses are now being run by bankruptcy administrators working with creditor banks.

The banks say they are trying to find new investors to restructure the parts of the group that are still viable.

These include Kirch Media's film and sports rights and its group of four national television stations.

The pay-TV station Premiere suffered large losses but is still broadcasting as it attempts to restructure.