Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education

Front Page



UK Politics







Talking Point

In Depth

On Air

Low Graphics

Thursday, August 26, 1999 Published at 07:28 GMT 08:28 UK

Business: The Company File

Telewest buys up Cable London

Cable London is connected to 440,000 homes

Telewest Communications has bought up cable-television company NTL's 50% share of Cable London.

Telewest, which already owns the other 50%, has agreed to pay £428m for the remaining half.

Last month, Telewest failed in a bid to buy Cable & Wireless Communications' residential cable assets, which were bought by NTL for £8.2bn.

Cable London's franchise covers 440,000 homes, mainly in north London.

The deal is costing Telewest £2,200 per home, in contrast to the £1,400 a home NTL paid to buy Cable & Wireless's residential assets.

Digital future

Despite this, Telewest insisted they had got a good price.

The company said it chose to buy out NTL's stake because it considered London to be a crucial market for the launch of new digital services, including high-speed Internet access.

Telewest's group finance director, Charles Burdick, said he felt Cable London had been undervalued.

Under the terms of an earlier agreement, Telewest had the right to buy out NTL's half stake at a price fixed by NTL - or sell its own share to NTL at that price.

Mr Burdick said that NTL had been prepared to buy Telewest's Cable London stake at the same price.

Telewest will issue new shares to its current shareholders to finance the deal.

Advanced options | Search tips

Back to top | BBC News Home | BBC Homepage | ©

The Company File Contents

Relevant Stories

05 Aug 99 | The Company File
Telewest high-speed Internet plan

26 Jul 99 | The Company File
NTL spends £8.2bn in UK cable deal

Internet Links

Cable London

Telewest Communications

The BBC is not responsible for the content of external internet sites.

In this section

Microsoft trial mediator welcomed

Vodafone takeover battle heats up

Christmas turkey strike vote

NatWest bid timetable frozen

France faces EU action over electricity

Pace enters US cable heartland

Mannesmann fights back

Storehouse splits up Mothercare and Bhs

The rapid rise of Vodafone

The hidden shopping bills

Europe's top net stock

Safeway faces cash demand probe

Mitchell intervenes to help shipyard

New factory creates 500 jobs

Drugs company announces 300 jobs

BT speeds internet access

ICL creates 1,000 UK jobs

National Power splits in two

NTT to slash workforce

Scoot links up with Vivendi

New freedom for Post Office

Insolvent firms to get breathing space

Airtours profits jump 12%

Freeserve shares surge

LVMH buys UK auction house

Rover - a car firm's troubles