Liberty Global CEO Says It Has Capital To Make Bid For Foxtel

Liberty Global Inc. Chief Executive Mike Fries said Sunday that the international cable company expects to be a long-term shareholder of Austar United Communications Ltd. (AUN.AU) and has enough capital at its disposal to make a bid for rival Australian cable-TV operator Foxtel.

Fries, however, acknowledged that such a deal would be difficult to execute, given Foxtel's complex ownership structure and the strong will and powerful status of its shareholders, which included Telstra Corp. (TLS.AU), News Corp. (NWSA, NWS.AU) and local billionaire James Packer's Consolidated Media Holdings Ltd. (CMJ.AU).

News Corp. owns Dow Jones & Co., publisher of this newswire.

Speculation that Liberty could divest its 54% interest in Austar intensified last month when it agreed to sell its stake in a Japanese telecommunications provider for US$4 billion to help it focus on the consolidation of the European cable-TV market.

Although he'd rather not sell the Austar stake to Foxtel, Fries said Liberty would have to consider a deal if it was offered a good price and revealed that Austar and Foxtel held merger discussions two or three years ago.

"But generally speaking, we are not in the posture of exiting and we're very, very happy owners," he said. "We're not sitting in a position where we need capital, or need a return to our shareholders."

Fries said a takeover offer for Foxtel would probably "fall on deaf ears.

"I think the problem is that you've got some very strong owners, strong-willed owners who are getting something from this relationship," he said.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692

Aurumin (ASX:AUN)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024