Australia's Foxtel makes bid for Austar

SYDNEY: Australian pay-TV provider Foxtel on Thursday made a bid for regional television operator Austar United Communications, valuing the target company at nearly Aus$2 billion (US$2.1 billion).

Foxtel, owned by Telstra Corp, Consolidated Media Holdings and News Corp, offered Aus$1.52 a share, compared with Austar's closing price on Wednesday of $1.265.

Austar said its board, which includes representatives of its largest shareholder, US cable company Liberty Global Inc, considered the offer price appropriate.

"Austar intends to work with Foxtel over the coming weeks to satisfy the conditions upon which the proposal has been made so the parties can enter into a definitive transaction," it said in a statement.

Foxtel said it hoped the merger would proceed smoothly.

"A successful transaction would bring together two of Australia's major subscription TV service providers, creating one of Australia's largest media businesses," it said.

Copyright AFP (Agence France-Presse), 2011