Cable firm takeovers referred to regulator

The Competition Authority has been asked to examine plans by Princes Holdings to expand and develop its cable TV operation into a broadband multi-media network through a major acquisition programme.

The company's Tanaiste, Ms Harney, referred their proposed acquisitions of cable company Suir Nore Relays and the proposal of its 50 per cent US shareholder TCI to buy Cable Management Ireland (CMI) were referred yesterday to the authority by the Minister for Enterprise, Trade and Employment, Ms Harney.

The authority will investigate the moves under the Mergers and Takeovers (Control) Acts. Princes Holdings is jointly owned by the TCI and Independent News and Media.

TCI confirmed last month that it had acquired CMI, whose customer base is mainly in north Dublin, Wicklow, Kildare and Meath and that this would be managed as part of the Princes network.

Princes' existing customer base is concentrated in Cork and Limerick. Its acquisition of Suir Nore Relays would also give it access to the population centres of Kilkenny and Clonmel and Thurles. A spokesman for Ms Harney said that the Competition Authority - which has invited applications from interested parties by October 18th - had until November 8th to report back to her. Under takeover legislation Ms Harney could decide to block either or both of the acquisitions. She is not bound by the decision of the authority but must publish its report. At the very least, the moves will delay completion of the acquisitions.

TCI acquired CMI through Liberty Media, a subsidiary which holds the Princes shares. The acquisition of CMI and Suir Nore, and their integration with Princes Holdings, would create a company with 240,000 customers, much fewer than the 360,000 customers which NTL/Cablelink has in Dublin, Galway and Waterford, according to Mr William Fagan, who is Princes' director of regulatory, legal and public affairs.

He said the proposed acquisitions would be "pro-competitive