Liberty, Telekom deal gets extension

Murdoch reported to be eyeing Kirch

By ED MEZA

BERLIN -- Liberty Media, which has been facing an uphill battle with German regulators in its bid to take over Deutsche Telekom's regional cable systems and related businesses, received a positive signal last week when federal watchdogs agreed to extend their deadline for a final ruling from Jan. 7 to Feb. 28.

Decision gives Liberty more time to make its case. Both Liberty and Deutsche Telekom had asked for the extension.

Meanwhile, there is continuing speculation that News Corp mogul Rupert Murdoch may seek a hostile takeover of German media giant Kirch Group.

Kirch -- Germany's largest commercial TV broadcaster, rights owner and pay-TV operator -- has dismissed the rumors. But German weekly Der Spiegel and newspaper Financial Times Deutschland have reported Murdoch may try to get his hands on Kirch by way of a deal with the media giant's creditors, which are owed billions.

The banks, the publications say, could pressure Kirch into opening its doors to Murdoch.

Murdoch is also said to be considering using a put option on Kirch subsid KirchPayTV to make a grab for the entire Kirch conglom. He would have to wait until October 2002 before he could exercise the option, however.

Many analysts are sceptical, saying that it is a risk the mogul is unlikely to take, especially in view of Kirch's massive debt.