Tech
NTL, Telewest announce merger; Flextech sale off
Published Monday, Oct 3 2005, 14:34 BST | By Neil Wilkes
NTL and Telewest finally confirmed details of their long-anticipated, £6.5 billion merger today.
The deal, which is expected to complete early next year, will see NTL consume Telewest at around $23.93 per share, comprising $16.25 in cash and 0.115 shares of NTL stock. Telewest shareholders will own approximately 25% of the combined unit.
Simon Duffy, NTL CEO, will be president and CEO while James Mooney will continue as chairman. Telewest chairman Anthony (Cob) Stenham becomes deputy chairman.
Barry Elson, acting CEO of Telewest, will leave once the transaction is completed and Eric Tveter, Telewest COO, will depart at the end of 2006.
“This is a transforming transaction for the U.K. cable industry," said Duffy. "It marks not just the culmination of a decade of consolidation but, more importantly, the creation of a new competitive force in the communications and entertainment sectors in the U.K.???
Mooney added: "The company will have additional resources to roll out new product offerings – such as HDTV, VoD and VoIP – across its footprint. This pro-competitive combination will provide customers with improved access to competitively priced and flexible communication and entertainment services.???
Meanwhile, the sale of Telewest's content arm, Flextech, has been called off. As expected, the recent auction process successfully demonstrated the value of the broadcaster, which Mooney today described as a "very important... strategic content asset".
The deal, which is expected to complete early next year, will see NTL consume Telewest at around $23.93 per share, comprising $16.25 in cash and 0.115 shares of NTL stock. Telewest shareholders will own approximately 25% of the combined unit.
Simon Duffy, NTL CEO, will be president and CEO while James Mooney will continue as chairman. Telewest chairman Anthony (Cob) Stenham becomes deputy chairman.
Barry Elson, acting CEO of Telewest, will leave once the transaction is completed and Eric Tveter, Telewest COO, will depart at the end of 2006.
“This is a transforming transaction for the U.K. cable industry," said Duffy. "It marks not just the culmination of a decade of consolidation but, more importantly, the creation of a new competitive force in the communications and entertainment sectors in the U.K.???
Mooney added: "The company will have additional resources to roll out new product offerings – such as HDTV, VoD and VoIP – across its footprint. This pro-competitive combination will provide customers with improved access to competitively priced and flexible communication and entertainment services.???
Meanwhile, the sale of Telewest's content arm, Flextech, has been called off. As expected, the recent auction process successfully demonstrated the value of the broadcaster, which Mooney today described as a "very important... strategic content asset".
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