ACCC Concerned Over Seven Group's Consolidated Media Bid

   By Gavin Lower 
 

MELBOURNE--Australia's competition watchdog said it had concerns over Seven Group Holdings Ltd.'s (SVW.AU) proposal to take over media-investment company Consolidated Media Holdings Ltd. (CMJ.AU).

The concerns relate to dominance over sports-broadcasting rights given Seven Group's links with the Seven Network, Australia's most popular television broadcaster, the Australian Competition & Consumer Commission said in a statement Thursday.

Consolidated Media, which owns 25% of Australia's largest pay-TV broadcaster Foxtel and 50% of sports-channel Fox Sports, has received a separate 1.94 billion Australian dollar (US$2.03 billion) bid from News Corp. (NWS), owner of this newswire.

Seven Group already owns 25% of Consolidated Media and had asked the ACCC to consider its own proposal to acquire the rest of the shares. Seven Group also has 33% of Seven West Media Ltd. (SWM.AU), which owns Seven Network.

News Corp. owns 25% of Consolidated Media, and Telstra Corp. (TLS.AU), Australia's biggest telephone company, owns the remaining 50%.

The ACCC said its concerns related specifically to the free-to-air TV market, and in particular "the influence Channel Seven may be able to exert over Fox Sports Australia in joint bids and other commercial arrangements in relation to sports rights."

The ACCC invited further submissions from interested parties on Seven Group's proposal and deferred its decision until Oct. 11.

Write to Gavin Lower at [e-mail]

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