Mobistar Studies Telenet Buy; No Decisions Taken

BRUSSELS (Dow Jones)--Belgian mobile-phone operator Mobistar, Thursday said it is studying a potential acquisition of cable company Telenet Group Holding, but cautioned that no decisions have been taken.

"For the moment, it's only analytical," said Mobistar spokeswoman Patti Verdoodt. "All possibilities are open - in a market like this every possibility is an option."

Earlier Thursday, Mobistar raised its revenue growth forecast for the full year to 6% from 5% after it added 61,187 new customers in the third quarter.

Analysts have been speculating about a possible tie-up between the mobile and cable operators, Verdoodt acknowledged.

KBC Securities analyst Dirk Saelens said a deal between the two would be a good strategic fit. Mobistar is a pure mobile player and its sales growth is expected to slow in coming years. At the same time, mobile and broadcast technologies are converging.

Unlike Belgacom, Mobistar has no television service. Telenet could provide one and give it a strong source of new customers. Since July of this year, Telenet has begun using the Mobistar network to provide its own mobile phone coverage.

"We already have a partnership with Telenet," Verdoodt said. "We are partners so anything can be a possibility."

Telenet could not be reached for comment.

-By Anne Jolis and William Echikson,Dow Jones Newswires;32-2-741-1480; william.echikson@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 19th October 2006