Feeds

Telewest to make a move on CWC

NTL also interested after France Telecom cash injection

  • alert
  • submit to reddit

High performance access to file storage

Cable & Wireless Communications (CWC) saw its shares jump six per cent as rumours circulated that the battle for the UK's largest cable company is intensifying. Banking sources indicated that Telewest Communications was seeking a loan to raise the £1 billion needed to fund an offer. Telewest's main competitor for CWC's affections is Britain's third cable group, NTL. The target company's share price ballooned on the back of the news, gaining 38 pence to close at 656 pence. This valued the company at about £10 billion. NTL share prices also rose slightly. "It looks like there's a bid battle developing over CWC between Telewest and NTL, which Telewest will probably lose because they haven't got enough cash," said one telecomms analyst, quoted by Reuters. Telewest stock was somewhat deflated, dropping over four percent to 286-1/2p. Market analysts were watching the brewing storm with some amusement, with the general feeling being that the best move for the companies would be a threesome, thus forming a company big enough to face BskyB and BT head on. "I'm working on the basis that sanity will prevail and the three of them will get together and form a major cable TV company sometime over the next six or nine months," said Nigel Hawkins, an analyst at Williams de Broe. In a separate announcement, it emerged that France Telecom is in talks with NTL about taking a minority stake in the company. France Telecom hopes to use a connection with NTL, to involve itself in deals with other UK companies. Neither company would speculate on the size of the stake or on its worth, but a spokesman for France Telecom confirmed that talks were underway, "...in order to facilitate the consolidation in the UK cable operators market." ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.