UK cable TV operator NTL acquires Telewest
Wednesday, October 5, 2005
United Kingdom cable TV operator NTL has agreed to buy Telewest Broadband for $6 billion USD (3.4 billion pounds). NTL’s and Telewest’s service territories do currently overlap. The acquisition is expected to save the companies 1.5 billion pounds.
NTL has agreed to pay $23.93 for each Telewest share, in cash and NTL stock. Current Telewest shareholders will own approximately 25 percent of the combined company. While both companies operate exclusively in the UK, they are listed in New York on the U.S. NASDAQ exchange.
Once the acquisition is complete, the combined company will have 5 million customers in the UK . Competitor British Sky Broadcasting (BSkyB) has almost 8 million. The combined company will also be the second-largest residential telephone company in Britain behind BT Group plc.
If the deal is approved, regulators and both companies shareholders' should close in the first quarter of 2006.
Sources
- Siobhan Kennedy and Adam Pasick. "NTL to buy rival Telewest" — Reuters UK, October 3, 2005
- "NTL seals $6bn Telewest takeover" — BBC News, October 3, 2005
- "NTL & Telewest: Together at Last!" — Light Reading, October 3, 2005
- Heather Timmons The New York Times. "NTL values Telewest at $6 billion" — International Herald Tribune, October 3, 2005
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