Murdoch may set sights on Sky TV

By GEOFF SENESCALL

While Telecom secured 10 per cent of INL yesterday, all the attention was focused on the media group's other big shareholder.

Market speculation suggests that Rupert Murdoch's News Corp is actively investigating restructuring options for its 49 per cent shareholding in INL, which in turn owns just under half of Sky TV.

Mr Murdoch is poised to spin off his international satellite and pay TV assets into a separate listed entity called Platco.

The market chat is that he may look to take over Sky TV with a view to backing it into the new vehicle.

For that to happen, he would also have to get INL onside.

Telecom, with its 10 per cent stake, will be a key player in any discussions as will Sky TV founder Craig Heatley and the Todd family who own 10 per cent of INL between them.

Telecom is understood to have bought into INL mainly because of its shareholding in Sky TV.

Ultimately, Telecom wants access to content and to be in a position to bundle services in a converged telecommunications, media and technology structure.

In its swoop yesterday, Telecom spent $64.6 million to buy nearly 3.9 per cent of INL to take its shareholding to 10 per cent.

Fund manager Axa confirmed it was among the sellers, unloading a third of its stake of 2 per cent at 425c a share.

Some 15.2 million shares traded off market and were reported this morning.

Yesterday's move comes nearly two months after Telecom snared its initial 5.7 per cent shareholding through a stand in the market at the same price.

At the time, Telecom was believed to have been disappointed that it did not get more shares.

The INL board also met yesterday.

INL managing director Mike Robson and Sky's Mr Heatley this week denied that there were any "formal" plans to merge the two companies, but admitted that an informal proposal had been considered.

Meanwhile, Platco will be centred on News Corp's BSkyB and Star TV pay TV stations, the United States TV Guide magazine and News Digital Systems.

News Digital Systems makes set-top boxes, which are used to receive cable and satellite channels.

News Corp had wanted to include Australian pay television group Foxtel in the spinoff, Platco.

But a wrangle between its shareholders, Telstra, News Corp and Kerry Packer's Publishing and Broadcasting, has stymied this for now.