PRAGUE, Aug 27 (Reuters) - Italy's MediaForEurope (MFE)

is set to take control of ProSiebenSat.1

after Czech investment group PPF on Wednesday said it would sell

its stake in the German broadcaster to MFE.

PPF said it would tender its 15.68% stake into MFE's offer

and unwind its remaining financial instruments, ending its

investment in ProSiebenSat.1 after attracting few takers for its

own share purchase offer.

MFE, owned by the family of late Italian Prime Minister

Silvio Berlusconi, is aiming to create a European television

champion to challenge U.S. streaming giants such as Netflix ( NFLX )

and Amazon Prime.

It secured a 43.6% stake through its offer earlier this

month, and shareholders have been given more time to tender

their shares.

"MFE's shareholding is very likely sufficient to secure a

simple majority at every ProSiebenSat.1 shareholder meeting,"

PPF said, explaining its decision to abandon the race.

"At the same time, PPF's limited acceptance makes it

impossible for PPF to continue its original role as a strategic

investor."

Earlier this month ProSiebenSat.1 recommended its

shareholders accept the latest public takeover offer from MFE,

which values the German group at 1.8 billion euros ($2.1

billion), ending its resistance to the Italian group.

PPF said earlier this month it would not raise its offer

after MFE sweetened its bid.

The results of MFE's offer are to be formally announced on

September 4.