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UPC nears German deal
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October 9, 2000: 7:44 a.m. ET
Dutch cable firm in talks to buy $1.3B unit from Deutsche Bank to end dispute
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LONDON (CNNfn) - Dutch cable TV operator United Pan-European Communications NV is close to buying Germany's second-largest cable provider Tele-Columbus from Deutsche Bank AG, said a person familiar with the matter, in a deal reportedly worth about $1.3 billion.
Such a deal, which the person said could be announced as early as this week, would both expand UPC's broadband cable business and conclude a legal squabble with Deutsche Bank over those cable assets. A trial began last week over UPC's claim that the German bank improperly bought Tele-Columbus.
Weekend reports said Amsterdam-based UPC would pay at least $1.3 billion for Tele-Columbus. The Dutch company already has a presence in Germany and is in exclusive talks with Deutsche Telekom regarding the purchase of one of Telekom's regional cable networks.
"We are in negotiations with Deutsche Bank and the talks are friendly," spokesman Bert Holtkamp said, declining to comment further.
A person familiar with the situation told CNNfn.com that the discussions were likely to bear fruit, although nothing was certain while negotiations continue over the price.
An appeals court ruling earlier this year prevented Deutsche Bank from attempting to sell Tele-Columbus to anyone other than UPC until the legal tangle was resolved.
Out-of-court settlement seen
The start of courtroom proceedings has brought the two companies together over the sale of Tele-Columbus, and talks have been going on for a week, the source said. A sale would amount to an out-of-court settlement for the two sides, the person said.
In its lawsuit, which UPC filed in London last year, it claimed Deutsche Bank should have been prevented from purchasing Tele-Columbus because the German bank's investment banking unit gained privileged information about UPC's financial information and strategies through its involvement in the cable company's initial public offering.
Deutsche Bank had denied that it breached commercial confidence. A spokesman for the company could not be immediately reached Monday.
Shares in UPC, which is controlled by Denver-based United GlobalCom (UCOMA: Research, Estimates), tumbled  1.4, or 6 percent, to 21.90 in Amsterdam around midday Monday.
Last month UPC announced plans to raise 1.4 billion to fund its expansion push by selling more shares to existing backers, such as UnitedGlobalCom, Liberty Media Corp., a unit of AT&T Corp. (T: Research, Estimates) and U.S.-based mobile-phone and computer chip maker Motorola Inc. (MOT: Research, Estimates).
Tele-Columbus would bring 2 million subscribers to UPC, adding to its current base of 8.4 million subscribers and solidifying the Dutch cable firm's position as Europe's biggest cable company. 
-- from staff and wire reports
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