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UPC buys German cable op
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April 3, 2000: 6:06 a.m. ET
United Pan-Europe Communication agrees to buy EWT/TSS for undisclosed sum
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LONDON (CNNfn) - United Pan-Europe Communications, Europe's largest broadband communications company, agreed Monday to buy Germany's EWT/TSS, the country's fourth-largest broadband cable operator, for an undisclosed sum.
EWT/TSS, which connects about 1.1 million homes and has 650,000 subscribers in Germany, offers cable video, internet access and has just started cable telephony services in Berlin.
Amsterdam-based UPC (UPCOY: Research, Estimates) will pay for the deal with a mixture of 25 percent cash and 75 percent of stock in UPC Germany. After the transaction is completed, the Stritzl family, which owns EWT/TSS, will retain a significant influence by becoming a large minority shareholder in UPC Germany.
Last month, UPC announced plans to take control of Luxemburg-based SBS broadcasting for $2.8 billion to acquire TV and film content for its interactive services. UPC, a unit of U.S.-based UnitedGlobalCom Inc. (UPCOMA: Research, Estimates), has more than 6.1 million cable subscribers across 13 European countries and Israel.
Software giant Microsoft (MSFT: Research, Estimates) and Liberty Media have a joint 15 percent stake in the Dutch firm after signing a joint venture last year to build on UPC's creation of a European Internet backbone through its Chello portal.
UPC shares were little changed in Amsterdam trading at 48.80 euros, after jumping as much as 6 percent in earlier trade. 
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