UPC confirms delay in Chello IPO
URL: cbs.marketwatch.com
By Nadja Hahn, FTMarketWatch
Last Update: 9:39 AM ET Jun 7, 2000 NewsWatch
Latest headlines
LONDON (FTMW) - United Pan-European Communications confirmed on Wednesday it is delaying the initial public offering of its broadband Internet service provider chello.
UPC spokesman Bert Holtkamp told FTMarketWatch the company was delaying the IPO because it was involved in talks with other companies on the future of chello.
?I can say that it is true,? he said, adding that chello would issue a statement shortly clarifying the situation. ?This is a delay but not a withdrawal,? he said, ?It is related to ongoing strategic discussions.?
Shares in UPC recovered some ground from early deep losses to stand 1.00 percent weaker at 27.70 euros after the news broke.
Chello faces the music
UPC?s CEO Mark Schneider earlier told reporters on the sidelines of a conference in London he didn?t think the IPO would go ahead as planned on June 8, marking a second delay for the float.
Asked if the float would go ahead on June 8, he was quoted as saying: ?No, I don?t think it is. We will finish dialogues with a couple of people first and then we will tell you more.?
According to the Wall Street Journal, the IPO could be put off because UPC is negotiating an alliance with U.K. cable operator Telewest Communications (UK:TWT: news, msgs).
Telewest shares fell 4.1 percent to 299.75 pence in London.
The WSJ said UPC, Telewest and chello executives are currently in discussions to agree on a share swap that would give Telewest a 10 percent stake in chello, in exchange for UPC getting a stake in Telewest.
On May 30, chello said it was delaying its IPO by extending the book-building period to June 8 from May 31, citing ?strategic discussions.? See full story.
A day later, the Financial Times reported Telewest was in alliance talks with chello, negotiating a stake in the company for access to the U.K. market in return.
The Wall Street Journal report also said UPC is in joint venture talks with U.S. Net access and portal provider Excite At Home Corp (ATHM: news, msgs), citing people close to the situation. |
