US cable giant, Liberty Media, has for the second time declined to increase its stake in UK cable operator, Telewest Communications, indicating that its European cable ambitions may be on the wane.
According to a report on FT.com, Liberty passed up the chance to buy Microsoft’s 25% holding in Telewest, despite having first rights on the stake. Microsoft is attempting to sell the stake in order to remove its loss-making investments, says the paper.
Liberty already holds 25% of Telewest and withdrew from an offer to buy a further 20% in July last year, citing the decline in stock prices and world markets as the reason (see Liberty Backtracks On Telewest Bid).
Telewest is currently undergoing a financial restructure from which it hopes to emerge with £3.5 billion less debt (see Telewest Positive On Restructuring Plan); this is expected to be completed early in 2003. Rival UK cable group, NTL, has this week finally completed its Chapter 11 bankruptcy procedure after offering investors a debt for equity swap (see NTL Emerges From Bankruptcy).
