Cable merger "delayed"

The long-anticipated merger between NTL and Telewest has been delayed, according to Reuters.

Citing unnamed sources "close to the matter," the news service reports that the two cable operators are unable to come to an agreement over price and therefore the announcement of a merger is "not likely" to be made until the autumn.

"People were saying August but I don't think we'll hear anything until the summer's over," Reuters quotes a source as saying.

The news comes amid growing speculation about the future of Telewest's Flextech content division. The company is soliciting bids for the division with a previously reported deadline of early September. It is understood that most of the major media groups are interested in the division which operates, among other channels, the UKTV bouquet in a joint venture with BBC Worldwide. However, given the well-publicised view of Telewest's acting CEO Barry Elson that "content becomes more valuable in the future and not less," some analysts speculate that the bidding process is simply a way for Telewest to increase the price NTL will eventually pay to merge. Given the wrangling over price reported by Reuters today, that scenario seems more and more likely.