Austar confident that ACCC will OK Foxtel takeover

Stuart Corner
Tuesday, 29 November 2011 13:39

IT Industry - Deals

Austar United Communications (ASX: AUN) has expressed renewed optimism that Foxtel's plan to acquire it will be consummated; following the ACCC's suspension of its timeline for reviewing the plan. Foxtel made no comment.

The ACCC was scheduled to complete its review of the proposed acquisition, announced on 26 May, on 30 November, but said yesterday, 28 November, that the decision had been postponed at the request of Foxtel which wanted to make further submissions. The ACCC did not give a new completion date.

Austar said the suspension "indicates discussions between Foxtel and the ACCC are continuing," and that it was "confident of bringing this transaction with Foxtel to a successful close in a reasonable timeframe."

This is the second delay in the ACCC's enquiry, which was scheduled to be completed by 8 September. The ACCC announced on 19 August that it had requested further information from the merger parties and would announce a new completion date in due course.

Others however did not view the latest developments as portending eventual success for the players. The AFR reported that both parties had made telephone book- sized submissions, and suggested that Foxtel would not be adding to this paper mountain unless it believed the deal was in jeopardy.