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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: DiViT who wrote (36654)	10/12/1998 3:35:00 PM
From: Robert G. Harrell	Read Replies (1) \| Respond to of 50808

Please, don't tempt me!! I'm a total electronics klutz and would surely break something. Besides, wouldn't that void my warranty? Bob

To: DiViT who wrote (36654)	10/12/1998 4:01:00 PM
From: John Rieman	Read Replies (1) \| Respond to of 50808

Kirch..................................... multichannel.com Regulators Nix CLT-Ufa, Kirch Plan for Premiere By DIETER BROCKMEYER October 12, 1998 Berlin -- Germany's cartel office, the Bundeskartelamt, blocked plans by media companies CLT-Ufa and Kirch to increase their stakes in the pay TV programming operation Premier to 50 percent each. Both companies control about 90 percent of the German broadcast TV market. Regulators feared joint control of Premiere would give them undue power, especially in areas like program acquisition. The cartel office's decision was not entirely unexpected; it made the same argument to European Commission regulators earlier this year when it recommended that the EC block the merger of Premiere and DF1, Kirch's German DTH platform. Kirch currently owns 25 percent of Premiere and Luxembourg-based CLT-Ufa owns 37.5 percent. French pay TV company Canal Plus agreed to sell its 37.5 percent holding in Premiere to Kirch under the condition that Kirch would sell part of it to another investor -- CLT-Ufa. Premiere claims about 1.65 million subscribers, of which about 250,000 receive its digital service. DF1 now has about 200,000 subscribers. CLT-Ufa said it may appeal the antitrust office's decision. "We are already in management control," a CLT-Ufa spokesman said. "The 50 percent shareholding situation would have changed nothing." With the antitrust decision, the future of digital pay TV in Germany is more unclear, even to those deeply involved. "We don't know what will happen," a CLT-Ufa executive said. Prior to the decision, Thomas Middelhoff, designated chairman of Bertelsmann AG -- which is a 50 percent shareholder in CLT-Ufa and manages its German activities -- had said backing out of Premiere entirely would have been an option. Analysts considered his statements a strategic move to put pressure on the cartel office, but the confusing situation in Germany's digital pay TV industry may leave the possibility open. What's more, new equity partners in Premiere may provide some clarity. Local media recently reported that German publisher WAZ and French media group Hachette could buy into Premiere. Axel Springer AG, another German publisher 40 percent owned by Kirch, is also thought to be interested in Premiere. Torsten Kreindl, head of Deutsche Telekom AG's cable unit -- which launched its own digital services this month -- said he does not expect the unclear scenario at Premiere to affect his business. "It does not matter how close our clients Premiere and DF1 work together," he said.