NTL to acquire Telewest to create a $10 billion company

Televisionpoint.com Team
British cable operator NTL will acquire Telewest, in a long-awaited deal that will create a $10 billion company with more than seven million customers, two executives involved in the negotiations said, according to media reports.

Simon Duffy, chief executive of NTL, is expected to head the new company, with Jim Mooney, NTL chairman, also expected to remain in the role in the combined group, the report said.

Barry Elson, acting chief executive of Telewest is not expected to have a role in the new cable group, while Cob Stenham, Telewest chairman, could remain on the board or be retained as a consultant, it said.

While the two cable groups' operations are in the UK, they were listed on NASDAQ following their restructuring a few years ago. The combined cable group, which will have 5 million customers, is expected to retain its primary stock listing in New York rather than moving to London, the report said.

NTL is expected to turn to the bond markets to fund its purchase of Telewest. Goldman Sachs is advising NTL, and Deutsche Bank is advising Telewest.