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UPC wins $1.2B in backing
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September 12, 2000: 7:18 a.m. ET
Europe's No. 2 cable firm gets cash from pref share sale to fund growth
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LONDON (CNNfn) - United Pan-Europe Communications NV, Europe's second-largest cable company, on Tuesday won  1.4 billion ($1.2 billion) in new financing from some of its major corporate backers, giving them a chance to buy on UPC's recent stock-price dip while improving its growth potential.
The company's sale of convertible preferred shares to a group of existing investors -- Motorola Inc., Liberty Media Corp., UPC's parent UnitedGlobalCom Inc. and two funds - amounts to a vote of confidence in the company. The investment, paid in cash, will allow UPC to expand and strengthen its balance sheet.
"We are delighted at this strong show of support from a combination of industry and financial players that are familiar with UPC's integrated strategy."  UPC Chief Executive Mark Schneider said in a statement.
Shares of Netherlands-based UPC rose 0.71, or 2.7 percent, to 26.71 in Amsterdam shortly after the announcement. UPC (UPCOY: Research, Estimates) shares are also traded on the U.S. Nasdaq stock exchange.
The stock has lost roughly three-quarters of its value since hitting a high of $79 a share on Nasdaq in early March.
UPC, which has more than 8 million customers in 17 European countries and in Israel, recently reported that its second-quarter net loss ballooned to five times the year-earlier level as it spent money on expansion, but that was better than analysts had forecast.
In addition to Motorola (MOT: Research, Estimates), Liberty Media (LMGA: Research, Estimates), a division of AT&T Corp. (T: Research, Estimates) and UnitedGlobalCom (UCOMA: Research, Estimates), UPC said the others that agreed to buy new preferred stock were certain clients of Alliance Capital and funds managed by Capital Research and Management Co. 
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