MELBOURNE--News Corp. (NWS) has offered 1.97 billion Australian dollars (US$2 billion) to buy Consolidated Media Holdings Ltd. (CMJ.AU) in a move that if successful will strengthen the company's interest in Australia's largest pay television network. The takeover bid valued at A$3.50 a share could see News Corp. double its stake in Foxtel to 50%, said Consolidated Media in a statement Wednesday. Consolidated Media, or CMH, is controlled by Australian casino billionaire James Packer. The A$3.50 a share offer represents a 14% premium on CMH's closing price Tuesday of A$3.08. Mr. Packer said that CMH accepts the offer and that he "welcomes News' proposal and looks forward to CMH and News working together to address the detailed terms and conditions." The bid will face scrutiny from Australia's competition regulator, which recently approved Foxtel's takeover of regional pay television network Austar after a lengthy review. For News Corp., the takeover is the most significant investment in pay television since its bid to buyout British Sky Broadcasting broke down amid controversy over the company's involvement in a phone hacking scandal. News Corp. also owns The Wall Street Journal and Dow Jones Newswires. "If the proposal is implemented, News would double its stakes in Australia's leading pay television businesses, FOX Sports Australia and Foxtel, to 100% and 50% respectively," said News Corp. in a statement Wednesday. Australian telecommunications company Telstra Corp. (TLS.AU) owns the remaining 50% of Foxtel. Write to Gavin Lower at gavin.lower@wsj.com
