Austar Confirms Buyout Talks Between Foxtel And Liberty

Australian pay-television provider Austar United Communications said Wednesday that discussions between its rival Foxtel and major shareholder US-based Liberty Global Inc. (LBTYA) in relation to a buyout of the company have taken place.

"No assurance can be given that those discussions will lead to a proposal being put to Austar or its shareholders," said Austar in a statement Wednesday.

Austar's announcement follows local media Wednesday reporting that Australian telecommunications giant Telstra Corp. (TLS.AU) and Consolidated Media Holdings (CMJ.AU) had agreed in principle for Foxtel to make a 2 billion Australian dollar (US$2.1 billion) takeover bid for Austar, a regional pay-TV provider.

Wednesday's Australian Financial Review said Austar's largest shareholder, Liberty Global Inc., had indicated it is open to a bid.

Austar said it had not received a proposal for a takeover by Foxtel.

Telstra, which owns 50% of Foxtel and News Ltd., the Australian arm of News Corp. (NWS) which owns 25% of Foxtel, declined to comment on the newspaper report.

Consolidated Media, which owns 25% of Foxtel and Foxtel weren't immediately available for comment.

Austar shares are up 24% at A$1.40 in the first 30 minutes of trade.

-By Gavin Lower, Dow Jones Newswires; 61-3-9292-2095; [e-mail]