Kirch. Still ticking......................................
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Telekom also announced it would spin off its cable television network and seek partners to break it up into regional companies, but a Commission source close to Van Miert said this in no way appeased his fears over reduced competition.
''This is totally independent. It's an announcement that Deutsche Telekom had made in November last year orally...but the problem with Kirch/Bertelsmann'' is different, the source said.
Rival cable companies have been the most vocal opponents of the deal along with German public broadcasters.
Speaking at the European Parliament, Van Miert insisted that the alliance, as it stands, would create a monopoly and pledged to resist any political pressure.
''Some people think that, with political pressure they can get their way,'' he said without elaborating.
He also rejected suggestions from some MEPs and in German newspapers that Europe would lag in the development of digital television if the deal was blocked and that it would leave the floor to Australian-born media mogul Rupert Murdoch.
''You're saying 'you should turn a blind eye' that Mr Murdoch will come along and will take over (the German market),'' said an emotional Van Miert.
Van Miert declined to comment on signs that the 20-member Commission may be split over sinking the deal, a rare occurrence in the history of European merger control.
Santer said in Bonn on Tuesday that he had not decided yet whether or not to follow Van Miert.
Other EU commissioners including Martin Bangemann, a German in charge of industrial policy, research chief Edith Cresson and economic affairs boss Yves-Thibault de Silguy were also believed to be nervous about blocking the deal.
Van Miert said the European Union executive would have to make up its mind on Wednesday, but did not rule out that a final ruling may come only next week to allow more time for further talks.
''The Commission has to fix its position tomorrow anyway,'' he said.
Under European merger rules, the Commission has until June 3 to give its verdict. Merger decisions must be reached by a simple majority.
The Commission has only blocked eight mergers since 1990, when it became the clearing house for mergers and takeovers affecting the 15-nation EU market, but has imposed conditions on many others.
On Monday, an overwhelming majority of antitrust experts sitting in an EU advisory merger committee recommended against the merger for the second time this month, Van Miert said, adding that Luxembourg was the only dissenting voice. Luxembourg is home to CLT-Ufa, Europe's largest television and radio company, which resulted from the merger in 1997 of the television interests of Bertelsmann and Audiofina. |
