The UK’s two cable TV giants, NTL Europe and Telewest, are being urged by shareholders to begin merger talks to form a single company with a market value of $7 billion.
According to a report in the Observer, shareholders are pushing for the talks to begin this autumn to bring together more than 1.5 million customers, which would throw the gauntlet down to News Corporation’s British Sky Broadcasting, the BBC and ITV in the battle for pay-TV viewers.
A shareholder told the newspaper: “It makes sense for the two companies to merge as soon as possible, because together they will be able to launch a formidable marketing campaign – and a more lavish one, after they have realised cost savings.”
An industry source told the Observer, both companies have now completed financial overhauls after nearly going to the wall in 2002 and shareholders in both companies are largely the same – pulling in the same direction making the merger relatively easy to come about.
Telewest shares de-listed from the London Stock Exchange on 14 July 2004 and after financial restructuring, re-listed on New York’s Nasdaq technology market today.
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