|
C&W mulls $7B cable deal?
|
 |
April 5, 1999: 8:06 a.m. ET
U.K. giant considering merger of cable TV assets with rival Telewest, report says
|
LONDON (CNNfn) - British telecom giant Cable & Wireless is considering merging $7 billion-worth of residential cable television assets with those of rival Telewest, according to a published report Monday.
The Wall Street Journal reported Monday that C&W is mulling a non-cash deal with Telewest for the residential assets of separately-listed Cable & Wireless Communications (CWZ). The assets are valued at $7 billion, according to the Journal.
Telewest (TWT) stock has been on the rise since the merger of U.S. groups Comcast (CMCSK) and MediaOne (UMG), announced in March. That merger has fed speculation that Telewest will seek a partner itself. Cable & Wireless (CW.) is believed to be a possible suitor.
Such a deal would be complicated to put together, given that it would involve a variety of major corporate players. The enlarged Telewest would have a shareholder list that includes C&W, Bell Atlantic (BEL) - an existing investor in CWC - AT&T (T) and MediaOne. AT&T and MediaOne are already investors in Telewest.
A combination between Telewest and C&W would almost complete the consolidation of the once-fractured U.K. cable industry, which currently has only three major players remaining: CWC, Telewest and Nasdaq-listed NTL (NTLI).
|
|
|
|
|
 |
|
