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Chello puts back IPO again
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June 7, 2000: 9:40 a.m. ET
Web access provider postpones debut; 'strategic discussions' continue
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LONDON (CNNfn) - Chello's stock market debut was thrown into further confusion Wednesday after the high-speed Web access provider's parent, Dutch cable firm United Pan-Europe Communications, said it would not go ahead with a share sale as planned this week.
UPC, Europe's largest broadband cable operator, had planned to list its subsidiary in Amsterdam and on Nasdaq at the end of this week, more than a week later than originally planned. The delay was caused when Chello said it was in "strategic discussions" with possible partners.
Widespread press reports have indicated the negotiations are with U.K. cable firm Telewest (TWT). Software giant Microsoft (MSFT: Research, Estimates) is in the process of buying a 29.9 percent holding in Telewest, and owns 7 percent of UPC.
A Chello spokeswoman told CNNfn.com the IPO was "indefinitely postponed" pending the outcome of the talks. Pricing had been set for Thursday.
UPC was due to offer 26.9 million shares, or 10 percent of Chello's capital, in the public sale, with the stock due to start trading on June 9. It indicated that the stock would be sold for a price between  13 and 17 a share, giving the firm a market value of 3.5 billion to 4.6 billion ($3.4 billion to $4.4 billion).
Fearing that the flotation could be put on hold permanently, investors in Amsterdam hammered UPC's stock, which fell 8 percent to 25.70.
The shares have had a difficult time in recent months as the appetite of Europe investors for technology IPOs has waned. Chello's valuation in the indicated price range is roughly half of the amount analysts originally predicted.
UPC recently canceled its $2.8 billion acquisition of Luxembourg-based TV and radio operator SBS Broadcasting, blaming the collapsing price of its own stock for scuttling the deal. UPC is 51 percent owned by UnitedGlobalCom (UCOMA: Research, Estimates).
At the end of the first quarter Chello had 180,000 subscribers in Europe, Latin America and Australia, but is adding 3,000 to 5,000 customers a week, according to analysts. 
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