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NTL and Telewest get close, real close

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NTL and Telewest are preparing to snuggle-up closer together ahead of long-term plans to a create a monster cable operator, the FT reported today.

The two cablecos are already jumping to bed together with a joint marketing campaign to push broadband services.

It's just one of a number of initiatives being explored that will bring the two cablecos closer together.

However, a formal merger - although not guaranteed - is still some way off since both companies have a combined debt mountain of more than £15 billion.

Both companies would need to cut this before entering any formal merger talks.

That though, is in the future. More pressing is their bid to join forces to help compete more effectively with the growing presence of satellite TV services.

The companies are already looking into purchasing set-top boxes jointly in a move that could save them millions of pounds a year, the FT says.

No one from Telewest or NTL was available for comment. ®

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