Sky, INL deny merger proposal

WELLINGTON - Sky Network Television chairman Craig Heatley has denied there is a formal merger proposal between Sky and publishing company Independent Newspapers.

But he and INL managing director Mike Robson have both acknowledged that informal talks have taken place.

INL, which owns 49 per cent of Sky, is itself 49 per cent owned by Rupert Murdoch's News Corp.

"There are close relationships between the two companies because of cross-shareholdings and directorships," said Mr Heatley.

"I expect that informal discussions will take place from time to time about how the two companies might in the future share opportunities which will arise from new ways of working together."

Mr Heatley said that if discussions ever reached the point where a formal proposal was being made by Sky's board, a timely announcement would be made to ensure that the market was properly informed.

Mike Robson said INL considered many propositions, and a merger with Sky TV was a project it had considered.

"There is, however, no formal proposition under consideration at the present for such a merger and no proposal will be before the INL regular board meeting on Friday."

Mr Heatley is a director of INL and has a small shareholding.