LONDON, Dec 12, 1999 (AP Worldstream via COMTEX) -- Cable TV company
Telewest Communications is to make a 2.5 billion pound (dlrs 4.5
billion) takeover bid this week for Flextech, producer of TV channels
which include Britain's UK Gold and Living, The Sunday Times reported.
Sharp rises in the share prices of both companies on rumors of a
takeover bid mean that Telewest is not expected to offer a big premium
over Flextech's current price of 14.50 pounds (dlrs 23.50) a share, the
newspaper said.
Telewest may offer 15 pounds (dlrs 24.30) a share, to be paid in
Telewest shares rather than cash, it added.
Microsoft Corp., which controls almost 30 percent of Telewest and 6.7
percent of Flextech, 'had had to be persuaded of the merits of the
deal,' said The Sunday Times.
Current negotiations center on who will take the top jobs in the
combined company, said the newspaper.
The deal is being billed as a merger although Flextech, valued at 2
billion pounds (dlrs 3.24 billion) is about one-fourth the size of
Telewest, said The Sunday Times.
Apart from Microsoft, the two companies already have close ties through
the U.S. media group Liberty which holds a 36 percent stake in Flextech
and a 24 percent interest in Telewest.
Copyright 1999 Associated Press, All rights reserved.
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