Feeds

Telewest to make a move on CWC

NTL also interested after France Telecom cash injection

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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." ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.