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To: Don Dorsey who wrote (32983)5/6/1998 4:39:00 PM
From: John Rieman  Respond to of 50808
 
Kirch/EC still talking.................................

dailynews.yahoo.com

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Tuesday May 5 7:50 PM EDT
Kirch, Bertelsmann Seen Making Further Concessions
BRUSSELS, Belgium (Reuters) - German media firms Bertelsmann AG and Leo Kirch are expected to make further concessions to win the European Commission's blessing for their digital television alliance, a commission official said Tuesday.

The companies told the European Union executive body in a meeting that "they would submit something in writing," only days after they made proposals to meet the competition concerns expressed by the commission.

Kirch and Bertelsmann are under pressure from the commission to modify their deal, which would merge Germany's pay-TV channels Premiere and Kirch's DF1, or face a prohibition.

On April 27, Kirch offered to sell 25 percent of its "output" rights to Hollywood films, a key ingredient for successful pay-TV, and to licence the manufacturing of its digital set-top decoders.

But rival broadcasters and cable companies remain critical of the merger plans, and the commission's merger department also believes that the proposals do not go far enough.

The commission will step up pressure on Kirch and Bertelsmann on Wednesday by asking an advisory committee of merger experts from the 15 EU states to back a preliminary draft decision to block the deal in its current form.

But talks are expected to continue as the commission has until June 3 to take a final ruling.

Reuters/Variety