Optus CEO Has Concerns About Proposed Foxtel-Austar Merger

Optus has concerns about the proposed merger of Foxtel and rival pay-TV company Austar United Communications Ltd. (AUN.AU), Optus Chief Executive Paul O'Sullivan said Tuesday.

"We are particularly concerned that the proposed merger of Foxtel and Austar will create a further barrier to competition accessing content," O'Sullivan said.

"We urge the (Australian Consumer and Competition Commission) to use the merger approval process to evaluate creating must-share content provisions," he said at a conference in Sydney.

Foxtel has offered to buy Austar for 1.92 billion Australian dollars ($2.02 billion), in a deal that will face antitrust scrutiny from regulators. The ACCC has said it is conducting an informal review of the merger.

Foxtel, which is 50%-owned by telecommunications giant Telstra Corp. (TLS) and 25% each by News Corp. (NWS) and Consolidated Media Holdings Ltd. (CMJ.AU), said Thursday that it had offered to buy Austar for A$1.52 a share.

Optus is owned by Singapore Telecommunications Ltd. (SGAPY).

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; Ross.Kelly@dowjones.com

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