Cable & Wireless Communications “Disappointed” By Stephen Byers Move

Cable & Wireless Communications released a statement today in which it declared its disappointment at Stephen Byers’ decision to refer the cable group’s proposed merger with NTL to the Competition Commission. The secretary of state issued referrals to two recent media purchases to prevent further consolidation within the industry.

French group Vivendi’s recent proposed acquisition of a stake in BSkyB has also come under scrutiny (see Vivendi Raises Stake In BSkyB To 25%). Byers believes that in this particular case, the acquisition “raises concerns in respect of the market for film and sports rights and for conditional access technology in the UK.”

Although the director general of fair trading, John Bridgman, advised against a referral for the proposed buy-out of CWC by NTL, Byers defended his concern “about the possible effects of this developing market of the reduction in the number of cable operators from three to two.” NTL reported last week that it was ready to finalise its takeover of Cable & Wireless Communications (see NTL Reports Losses As Expansion Plans Are Finalised).

The Commission will make its report about both groups on 25 February 2000.

Department of Trade and Industry: 0171 215 5600