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To: JRH who wrote (21169)	1/25/1999 4:07:00 PM
From: 16yearcycle	Respond to of 77400

was this a problem today: Microsoft Invests $500 Million In NTL In Telecom Deal REDMOND, Wash. (Reuters) - Computer software giant Microsoft Corp. (Nasdaq:MSFT - news) said it will invest $500 million in Britain's NTL Inc. (Nasdaq:NTLI - news) as part of an agreement announced Monday to jointly develop a high-tech communications network in the United Kingdom and Ireland. Microsoft invested in order to speed up NTL's deployment of high-speed voice, video and data services over its national fiber-optic networks and to continue NTL's introduction of advanced Internet, telephone and cable television services over its broadband network, the companies said in a statement. Microsoft and NTL, a telecommunications company which owns and operates an independent communications network in the United Kingdom, also plan to develop new digital services and expect to sign pacts in software and services in 1999. The technology companies will form a group to develop new digital services. In return for its investment, Microsoft will receive 1.2 million five-year warrants to purchase NTL common stock at an exercise price of $84 per share, the companies said. As part of the deal, Microsoft said it will buy $500 million of NTL's 5.25 percent convertible preferred stock. The stock is convertible into NTL common stock at a price of $100 per share. The preferred stock is redeemable 10 years from the date of issue in cash or NTL common stock. The stock may be redeemed by NTL on the earlier of seven years or the date on which NTL's common stock has traded above $120 for 25 consecutive trading days. Dividends are payable at NTL's option in cash, common stock or additional shares of preferred stock. The closing of the purchase of the preferred stock is expected soon. In midday Nasdaq trading, Microsoft shares traded $5.75 higher at $162 and NTL stock surged $12.19 to $79.875, after hitting a record high of $82.25.