NTL, Telewest merger announcement "imminent"

Cable firms NTL and Telewest are finally expected to unveil details of a merger later this month, according to a report in the Independent On Sunday today.

Sources told the newspaper that it was "extremely unlikely" that the inevitable announcement would be postponed any further.

Investment bank UBS predicts that NTL will offer $24 per share to takeover Telewest, valuing it at $5.9 billion.

"Telewest and NTL will want to do this deal sooner rather than later to help them compete against the likes of BSkyB," said a UBS analyst.

"We expect it will be largely a cash-based transaction, given the strength of NTL's balance sheet. A part-cash rather than an all-share deal also means that the synergies will not be diluted and the new company will be able to expand more quickly."

The $12 billion (£6.8 billion) merger will create estimated savings of around £200 million a year.