Flextech sale called into further question

Potential Telewest merger partner NTL has reversed its stance on owning content, calling any sale of Telewest content division Flextech into further question.

Earlier this year, NTL CEO Simon Duffy said that he was "somewhat sceptical of the alleged merits of vertical integration between content and distribution," comments that sparked rumours of a rift between NTL and Telewest given the well-publicised comments of Telewest's acting CEO Barry Elson, who said that Telewest likes "being in both businesses."

Following those comments in May, Telewest began soliciting bids for Flextech. Many analysts, however, have stated all along that the manoeuvre was merely a value-building exercise as merger talks between NTL and Telewest got underway.

This week, NTL chairman Jim Mooney signalled a shift in his company's plans respecting content, telling a Goldman Sachs conference on Wednesday:

"It's important for companies like ours that own the triple play to not be commoditised. It's incumbent on companies like ours to have some content."

Nevertheless, some companies are still on the Flextech bidding shortlist. It is understood that Sky, RTL, Sparrowhawk and Discovery are on that list.