Axel Springer increased financing to 1.2 bln euros

FRANKFURT, Aug 4 (Reuters) - German publisher Axel Springer increased its financing to 1.2 billion euros ($1.32 billion) at the beginning of July, the time when it was in negotiations to buy Pearson (Xetra: 858266 - news) 's Financial Times.

The company said in its semi-annual report published on Tuesday it had raised its financing level from 900 million euros at the end of June.

Springer was outbid for the FT last month by Japan's Nikkei, which paid $1.3 billion, in the latest setback to its ambitions to acquire a trophy English-language news title.

Springer is changing its legal form to a so-called KGaA or partnership limited by shares, which would allow the company to raise more capital and grow without major shareholder Friede Springer giving up control.

The widow of founder Axel Springer has been seen as an obstacle to a mooted merger with broadcaster ProSiebenSat.1 as well as a force for financial prudence in acquisitions.

"(The) planned new legal form enables further mid- and long-term growth," Axel Springer said in a investor presentation posted on its website. ($1 = 0.9125 euros) (Reporting by Harro ten Wolde; Editing by Georgina Prodhan)