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MSFT to pay $3B for Telewest
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October 22, 1999: 4:33 p.m. ET
Regulatory filing details previously announced deal for U.K. cable firm
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NEW YORK (CNNfn) - Microsoft Corp. will pay approximately $3 billion in stock for its previously announced stake in British cable operator Telewest Communications Plc, according to a regulatory filing.
In May, Microsoft (MSFT) agreed to buy MediaOne Group 's (UMG) 29.7-percent stake in Telewest. The move was part of a three-way transaction under which AT&T Corp. (T) acquired MediaOne for $58 billion in cash and stock.
Under terms of the agreement, MediaOne will get 0.05 of a Microsoft share for each of the 638.3 ordinary shares of Telewest it currently owns.
At Microsoft's current stock price, the agreement values Telewest stock at $4.64 a share, valuing the deal at approximately $3 billion.
Terms of the deal were disclosed in a Securities and Exchange Commission filing made earlier this week.
Both the Microsoft-Telewest agreement and the AT&T-MediaOne merger are subject to regulatory approval.
Microsoft shares fell 3/8 to close at 92-11/16 in Friday trade.
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