Cable Companies Merge

Cable and Wireless this morning announced a merger with Nynex Cablecomms, the UK’s second largest cable operator, Mercury Communications and Bell Cablemedia to create a new UK company called Cable and Wireless Communications.

Cable and Wireless Communications will be 52% owned by Cable and Wireless, 18% by Nynex Cablecomms and 14% by Bell Cablemedia. The new company will offer services ranging from telephone and television to Internet and multimedia provision to approximately six million homes across the UK. It hopes to “build on common and complementary strengths to create a unified and marketing-led organisation” with reductions in costs and increases in revenue being made possible.

…It has also emerged that Cable and Wireless has taken a £250m stake in Bell Cablemedia, the UK cable company, which in turn is taking control of Videotron. Bell has entered an agreement to acquire 56% of Videotron, which will give the enlarged Bell Cablemedia a franchise covering some 3.2 million homes including the leading position in the London market and major franchises in the North of England, East Anglia and the South coast.

News is now emerging however that CableTel is seeking legal advice in a bid to block the Videotron/Bell Cablemedia deal. It has been reported that CableTel is interested in controlling Videotron itself.

Cable & Wireless: 0171 315 4000

Nynex: 0181 873 2000

Bell Cablemedia: 0171 363 2000

Videotron: 01703 315000