New Zealand Companies Seek to Delay Sky Network TV, Vodafone Merger
16 February 2017 - 8:57AM
Dow Jones News
By Rebecca Thurlow
SYDNEY--Three New Zealand companies are seeking to challenge a
tie-up between Sky Network Television Ltd. (SKY.NZ) and Vodafone
PLC (VOD.LN).
Vodafone announced plans in June to add pay TV to its New
Zealand operations through a 3.44 billion New Zealand dollar
(US$2.49 billion) merger of its local unit with Sky Network
Television, as the world's big telecommunications companies
continue to pivot toward TV and online video. New Zealand's
antitrust regulator, the Commerce Commission, is due to make a
decision on Feb. 23 on whether the deal can go ahead.
Sky and Vodafone have received letters from legal counsel
representing telecom company Spark NZ (SPK.NZ), electricity company
Trustpower (TPW.NZ) and InternetNZ requesting assurances that Sky
and Vodafone refrain from completing the merger if the commission
gives clearance, for a period of time that will allow the parties
to challenge the decision in court.
Sky and Vodafone have declined to provide the requested
assurances, and plan to proceed with the completion of the merger
if the commission approves the deal, Sky said in a regulatory
filing.
"Counsel for Spark indicated in their letter that if the
assurances aren't provided they anticipate being instructed to seek
an interim stay," Sky said.
"Sky doesn't consider that there is any proper basis for seeking
an interim stay from the courts and, should any party seek an
interim stay, Sky intends to oppose any such application and seek
an undertaking as to damages."
The Commerce Commission in October said it was concerned the
deal could crimp competition in the country's telecommunications
and pay TV services markets. In particular, it worried about the
ability of the merged entity to use ownership of content -
particularly live sports - to make buying Sky on a standalone basis
less attractive than buying it in a bundle with Vodafone's
broadband and mobile services.
- Write to Rebecca Thurlow at rebecca.thurlow@wsj.com
(END) Dow Jones Newswires
February 15, 2017 16:42 ET (21:42 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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