More cable convergence. I'm not sure of CMTO's standing with any of these companies:
interactive.wsj.com
June 14, 1999
Dow Jones Newswires
Telewest Shares Gain On Renewed Three-Way Merger Talk
LONDON -- Shares of Telewest Communications PLC (TWSTY) are higher at midday Monday on renewed speculation that it may be one part of a three-way cable merger along with NTL Inc. (NTLI) and Cable & Wireless Communications PLC (CWZ).
At around 1130 GMT, Telewest was up 8 pence, or 2.9%, at 28.25 pence, while Cable & Wireless Communications shares were ahead 20 pence, or 3.6%, at 580 pence.
U.K. newspaper The Mail on Sunday reported that the three companies are planning to forge a GBP30 billion single cable group to take on British Telecommunications PLC (BTY) and British Sky Broadcasting Group PLC (BSY) in the telephone and pay-TV market.
Citing "high ranking officials", the paper also said Deutsche Telekom AG (DT) and France Telecom (FTE) have been invited to take a stake worth up to GBP5.0 billion in the venture.
Telewest, Cable & Wireless Communications and NTL declined to comment on the report.
But it's already known that Telewest and Cable & Wireless Communications are discussing various corporate options.
All three companies are already known to have discussed possible tie-ups. The introduction of international backers could provide the final push needed to get a deal off the ground, the paper said.
Such a deal would be the final and biggest step in a series of mergers in the cable industry, which have left the three dominating the business.
The move could also involve U.S. software group Microsoft Corp. (MSFT), which has a 29.9% stake in Telewest and 5% of NTL, and is keen to see its software adopted as widely as possible in the emerging digital TV sector, the paper said.
The three cable groups are expected to launch digital cable services later this year. These could eventually include interactive services such as Internet access through the TV.
The involvement of one or both of the leading European telecoms companies would also mark a new phase in international consolidation in the telephone industry.
Deutsche Telekom recently lost out to Olivetti SpA (I.OLV) in a bidding battle to take over Telecom Italia SpA (TI) and is still seeking a route to expand internationally.
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