Regional subscription television provider Austar has denied a newspaper report claiming that an acquisition price had been agreed to between Liberty Global and Foxtel.
The Australian Financial Review reported today that Foxtel had agreed to purchase Liberty Global's 54 per cent share of Austar for $1.49 per share, valuing Austar at $1.9 billion. But Austar responded by saying that no agreement had been reached and the article was "uninformed and inaccurate".
"Austar has discussed this matter with LGI and can confirm that today's speculation is uninformed and inaccurate. In particular, no agreement has been reached between LGI and Foxtel, including with respect to price," the company told the stock exchange.
The AFR article suggests that Foxtel will require financing in the order of $1.2 billion to complete transaction, and has already approached a number of financial institutions for funding.
Austar continues to maintain that there is no assurance that an agreement between Liberty Global and Foxtel would result in a buyout proposal being put to the remaining Austar shareholders.
The speculation pushed Austar shares up 6.5 per cent in early trading, easing later in the day to be 3.5 per cent up at $1.36 (3:30pm AEDT).
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