UPDATE: Australia's Regulator Delays Foxtel/ Austar Decision A Day

Australia's competition regulator has delayed until Friday its ruling on Foxtel's proposed 2.5 billion Australian dollar (US$2.7 billion) takeover of regional pay television company Austar United Communications Ltd. (AUN.AU).

The Australian Competition and Consumer Commission's decision, originally slated for Thursday, is now expected to be released Friday morning, a spokesman for the regulator said. The spokesman said the delay was due to administrative reasons.

Foxtel is 50% owned by Telstra Corp. (TLS.AU) and 25% each by News Corp. (NWS) and Consolidated Media Holdings Ltd. (CMJ.AU). A spokesman of News Corp.'s Australian unit declined to comment when called. News Corp., owner of Dow Jones & Co., the publisher of this newswire, is fighting to contain a phone hacking scandal that has engulfed its tabloid newspaper assets in the U.K.

The scandal has prompted Australia's Greens Party and the country's union of journalists to call for a review of media ownership.

Austar's major shareholder, U.S. cable giant Liberty Global Inc., (LBTYB) has agreed to the terms of the takeover, and Austar's independent directors have also recommended minor shareholders approve the deal. If approved by the regulator the deal would see Foxtel become Australia's dominant pay television provider, with estimated annual revenues of more than A$2.8 billion.

A spokesperson for Austar wasn't immediately able to comment. A spokesperson for Foxtel declined to comment.

Ahead of the ruling, analysts are skeptical that a deal could be blocked due to News Corp.'s specific problem.

Commonwealth Bank of Australia (CBA.AU) believes the regulator is "more likely to approve the deal than not", but said in a note the organization, of ACCC, could recommend that content be regulated to ensure internet service providers using the federal government's A$36 billion high speed internet national broadband network have affordable access to content.

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

--Gavin Lower in Melbourne contributed to this article.

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