Australian regional subscription television provider Austar United Communications Ltd. (AUN.AU) said Wednesday it has yet to receive a takeover offer after saying earlier this year rival Foxtel had been in discussions with Austar's largest shareholder about a possible bid.

"We will advise you if there's any change in that situation," Austar Chief Executive John Porter told a briefing for the company's first-quarter results.

Austar said last month U.S-based Liberty Global Inc. (LBTYB), which holds 55% of Austar, had held "verbal discussions" with Foxtel about a possible acquisition.

Foxtel is 50%-owned by Australian telecommunications giant Telstra Corp. (TLS.AU), with media companies News Corp. (NWS.AU) and Consolidated Media Holdings Ltd. (CMJ.AU) each owning 25%. News Corp. owns Dow Jones & Co., publisher of this newswire and The Wall Street Journal.

While Austar said last month there was no assurance the discussions would lead to a takeover bid, Royal Bank of Scotland analyst Fraser McLeish said there was a reasonably high chance an offer will emerge.

"If it doesn't happen now, it's never going to happen," he said.

McLeish said Austar would be a strategic asset for Telstra as part of its content-provider strategy and as regional broadband Internet markets opened up with the roll out of Australia's national high speed Internet network. Liberty Global would also be attracted by the returns of a sale given the Australian dollar is currently above parity against the U.S. dollar.

"The stars are aligned," McLeish said.

Porter said that, from his stand point, there was a "terminal date" to the takeover speculation.

"We have strategic decisions to make. We need to get on with our lives," he said.

Porter said he hoped the situation would "come to a head" in the next two to six weeks.

A spokesman for Foxtel wasn't available for comment.

Austar reported a net profit of A$74 million for the three months ended March 31, more than quadrupling the previous corresponding period's result, largely because of a A$120 million sale of spectrum to the Australian government-owned company rolling out the national broadband network, NBN Co.

Customer numbers for the quarter fell 1.1% to 755,641 from the previous quarter, largely because of devastating floods and cyclones earlier in the year in regional Australia, or areas outside the capital cities.

But Porter said that as the region recovered, so had Austar, with record sales days in March.

-By Gavin Lower, Dow Jones Newswires; 61-3-9292-2095; gavin.lower@dowjones.com
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