Shares rose in early trading to 190 pence from a closing price of 177 pence for Audiofina shares as dealers eyed the potential cost savings from the merged group. However, after an early rally, the RTL share price dropped back to 180 pence.

Only 10.3 per cent of the company has been floated, but RTL has said that it may issue more shares to pay for potential acquisitions. The group's Chief executive officer, Didier Bellens, said the listing "provides us with greater access to international capital markets and the financial flexibility to consolidate our leading position in a number of key European markets."

RTL is also being listed in Luxembourg and Brussels. The new company does not include Pearson's interest in the Spanish channel Antena 3. Pearson hopes to win approval for this business to become part of RTL. But until it does, its stake in the new media group will be lower than the 22 per cent previously expected at 20.5 per cent.

RTL has said that it is "studying all possibilities for the British market", amid rumours that Bertelsmann had made an offer to buy the British media group, United News and Media. The rumours of interest from RTL had pushed United News shares higher on the London Stock Exchange Tuesday.

"RTL Group is interested in increasing its stake in Channel 5 to 100 per cent," a spokesman said. United News and Media and Bertelsmann's CLT-UFA unit each hold 35.37 per cent in Channel 5 television broadcaster, with the rest owned by Pearson.

In April, Bertelsmann Chairman Thomas Middelhoff had said that CLT-UFA planned to increase its stakes in Channel 5 in Britain and M6 In France to 100 percent where possible.

Shares in Dutch Bann software group slump on bankruptcy talk
The price of shares in the Dutch software company Baan slumped on Wednesday amid speculative talk that the company might go bankrupt if a takeover offer by Invensys of Britin falls through. The share fell by 3.4 per cent to 2.65 euros. A dealer said: "The stock has not been suspended but there is very little trading in it now, everyone is waiting for the outcome of the offer by Invensys."

On May 31 Invensys offered 2.85 euros per share valuing the company at 762 million euros, and the bid expired on Tuesday. Invensys now has five days in which to declare the offer unconditional or to withdraw. Analysts hold that if the offer is withdrawn, Baan will go bankrupt.

Lawson makes a dismal debut
Japan's second biggest 24-hour store chain, Lawson Inc, has made a dismal market debut, brokers said. Convenience store chain Lawson was hammered on its first day of trading, with retailers out of favour following the spectacular collapse on July 12 of department store operator Sogo Co. Ltd. "Lawson's debut was badly timed as retail issues have been depressed due to uncertainty over the domestic economy," said Muneyuki Ichihara, head of investment information at Nomura Securities.

"Its weak debut further spoiled buying sentiment," he added. Lawson ended the day at 5,520 yen, well below its initial public offer price of 7,200 yen. "Investors were reluctant to buy up Lawson shares since overall sales of convenience stores remain stagnant," Nikko Securities senior analyst Hiroichi Nishi said.