New speculation on ntl, Telewest merger

Speculation is once again mounting that Britain's two biggest cable companies, ntl and Telewest, will seek to begin merger proceedings early next year.

The news will hardly come as a surprise to long-time followers of the UK cable market; it has long been expected that the two companies will eventually merge to provide more solid competition to the digital satellite and digital terrestrial platforms.

This time round, the Guardian is citing "American shareholders in both companies" who have apparently told the paper that they "expected talks to start" once Telewest emerges from its multi-billion dollar debt-for-equity financial restructuring and after ntl completes the sale of its broadcast unit.