Regulator Mulls Changes To Foxtel, Austar Takeover Proposal

Australia's antitrust regulator said Wednesday that Foxtel has presented it with an undertaking to address competition concerns related to its proposed A$1.9 billion (US$2.0 billion) acquisition of Austar United Communications Ltd. (AUN.AU).

The Australian Competition and Consumer Commission said it will either accept or reject the proposed undertaking following market consultation. It said it has set a tentative decision date of March 29.

The terms of the undertaking say that Foxtel will be prevented from entering into certain exclusive content agreements.

"By reducing content exclusivity, the proposed undertaking aims to lower barriers to entry and promote new and effective competition in telecommunications and subscription television markets," the ACCC said in a statement.

Austar said the undertakings are aimed at resolving the ACCC's competition concerns about the deal.

Foxtel is 50% owned by Australian telecommunications giant Telstra Corp. (TLS.AU) and 25% each by News Corp. (NWS), the owner of this newswire, and Consolidated Media Holdings Ltd. (CMJ.AU).

-By Ross Kelly, Dow Jones Newswires; [phone]; [e-mail]