UPDATE: Austar Shareholders Give Nod To Foxtel Takeover

Austar (AUN.AU) shareholders have voted overwhelmingly in favor of Foxstar's takeover offer as its long-standing chief executive brushed aside claims a secret unit within Rupert Murdoch's News Corp. (NWS) promoted piracy that cost Austar money in the 1990s.

Austar's board told shareholders at the company's final annual general meeting Friday it is confident Australia's competition watchdog will approve the 2 billion Australian dollar takeover by April 13.

If the merger is given its long-awaited clearance, shareholders will be paid by April 26, the board confirmed.

The scheme was approved by 399,246,889 votes to 35,340,691. There were 617,506 abstentions, according to an Austar statement.

Austar Chief Executive John Porter--who has led the company since 1995--said the takeover is a "win win" for everyone and the A$1.52 a share offer represents a "substantial premium" to the media company's historical share price. "Its more a case of what Foxtel is willing to agree to," he told reporters when asked if he saw any problems ahead.

"There is no connection, no relevance and no duty of care on behalf of Austar," he said when asked if the takeover of Austar--25% owned by Rupert Murdoch's News Ltd.--will be affected by allegations of piracy almost two decades ago.

--By Caroline Henshaw, Dow Jones Newswires; caroline.henshaw@dowjones.com

Aurumin (ASX:AUN)
Historical Stock Chart
From Oct 2024 to Nov 2024