PARIS Sept 8 French pay TV operalot Canal Plus says it will merge with pay-TV com pany Netnold creating one of the world's largest networks tn a deal valued al 1 64 billion dol lais, says AP

With over 8 5 million sub scribers the group will have a strong (tosition tn France Ger many. Italy. Spain. Scandi liana and the Benelux countries as well as a presence in growing Central European markets. Canal Pius said Friday

The new company aims to position itself for the digital TV boom, producing and broadcasting multichannel television with tailor made channels adapted to local tastes across Europe Canal Plus said in a statement announcing the

Net hold, jointly owned by Switzerland's Cohipagnie Fl-nanciere Richemont AG and by South Africa s MIH. will be acquired by Canal Plus for 6.1 million new Canal Plus shares valued at dlrs 6 billion and a cash payment of 45 million dollars.

As a result of the share issue. Richemont will own 15 per cent of Canal Plus and M1H will own 5 per cent. Canal Plus said.

Net hold Chairman Johann Rupert acknowledged that Net hold had been in talks with the US-based Hughes Electronics Corp, a unit of General Motors. but in the end Nethoid decided to find a European partner.