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Shares in Austar United Communications Ltd (ASX:AUN) have jumped over six percent in morning trade after reports and renewed speculation that Foxtel is in advanced talks to buy Liberty Global’s 54 per cent stake in the region pay-TV company.
In March Austar denied that it had received any proposals from Foxtel, claiming it was aware of talks between Foxtel and its largest shareholder, Liberty Global, but could not conclude if these discussions will lead to a proposal.
According to The Australian, sources close to the discussions say Foxtel shareholders have put aside their differences and a deal around the $1.50 mark could be struck within weeks, valuing the company at around $2 billion.
Shares in Austar had risen 6.53 per cent this morning, trading at $1.30.
In the year ending on 31 December 2010, Austar reported a net profit of $99.65 million.