PerfecTV.........................................................
nikkei.co.jp
Itochu Welcomes PerfecTV/JSkyB Merger
TOKYO (Nikkei)-Itochu Corp., the top shareholder of PerfecTV Corp., expressed support for the ongoing merger talks with Japan Sky Broadcasting Corp. (JSkyB), The Nihon Keizai Shimbun reports in its Sunday edition.
"We can both enjoy the benefits. We back the idea of a merger on an equal footing," said Shogo Honma, managing director of Itochu. Providers of TV programs also welcomed the move, saying it will avoid excessive competition.
Honma said the merger was more effective than other forms of alliance such as unifying receivers. Fears of an intense battle for viewers lie behind the merger. "When broadcast satellites start using digital communications in the year 2000, competition will reach new levels," he said.
That formed the basis of the trading company's decision to accept the proposal from JSkyB, the Itochu official said.
Itochu plans to have a meeting early next week with other major shareholders of PerfecTV, Mitsui & Co., Nissho Iwai Corp. and Sumitomo Corp., to finalize the merger details. |
