To: steve host who wrote (70 ) 2/6/1999 6:11:00 PM From: Mad2 Respond to of 489
UPC set for further acquisitions Copyright 1999 Phillips Business Information, Inc. CABLE EUROPE February 3, 1999 SECTION: Vol. 4, No. 3 LENGTH: 436 words HEADLINE: UPC SET FOR FURTHER ACQUISITIONS BODY: United Pan-Europe Communicat-ions filed the preliminary prospectus for its IPO last week and simultaneously revealed that Microsoft is to invest an additional $300 million in the company. The IPO, including the stake set aside for Microsoft, is expected to raise between 960 million and 1,080 million euros ($1.11 - $1.25 billion), representing about 32.5 per cent of UPC's ordinary share capital. The final offer price is expected to be announced on or about February 10. Two weeks ago UPC agreed to buy out its partner in the Dutch United Telekabel Holdings (UTH) operation, energy company Nuon, for Gld550 million (Cable Europe vol.4 issue2). "We'll spend some cash on [the Telekabel purchase]," UPC CEO Mark Schneider told Cable Europe. Further acquisitions may also be in the offing, not least because Nuon is merging with other Dutch regional energy companies - ENW, EWR and Gamog. These companies are expected to sell their own cable interests, including Gamog's 120,000- subscriber network and ENW's 26.4 per cent stake in Multikabel. "We would very much like to own more," said Schneider. "We've disclosed a degree of interest to Nuon and Nuon knows it. They have other partners in the merger. They've got to work with them, but I think there's an understanding that we'd like to buy and if it's their decision, then they'll want to sell. We certainly are interested in buying more in Holland." UPC's list of acquisition targets also include MediaOne's 50 per cent stake in A2000. As with NTL in the UK, Microsoft and UPC are establishing a joint technology committee to further their co-operation. "They'll be involved in our set top box integration as well as our Chello development," said Schneider, referring to UPC's broadband Internet over cable brand. "We have a two way preferred customer-supplier status with each other. We have services that they can use - we'll be a preferred supplier for their telephone data business. We'll work together to enhance some of their products and make them work in the broadband environment. They have existing products, some of which we use already. They're going to take those products and enhance them. With the set top box integration, with computer television functions, the electronic programme guide, navigation tools, there's a lot of software tools they can bring forward." Schneider said there would be no formal management representation for Microsoft. but that they would "be on the technical committee and work things through with our technical people." LANGUAGE: ENGLISH LOAD-DATE: February 3, 1999