NTL Backs Out Of Newcastle United Bid

Cable telecommunications company, NTL, has decided not to make a full takeover bid for Newcastle United Football Club. Its decision to back out of a bid is based on the findings of the Monopolies and Mergers Commission (MMC) on the proposed merger of BSkyB and Manchester United, which was blocked by the Department of Trade and Industry (DTI) earlier this month (see BSkyB’s Man Utd Takeover Is Blocked).

The MMC, now the Competition Commission, found that the BSkyB/Man Utd merger would have unacceptable ramifications on television rights negotiations between broadcasters. The Commission also believed that the merger would be harmful to British football in general.

NTL’s planned offer for Newcastle Utd (see Update: NTL/Newcastle United Deal) had also been referred to the Competition Commission and the cable group did not feel the merger would have been allowed to go ahead. NTL’s chief executive, Barclay Knapp, said: “We’re clearly disappointed in the circumstances that have led us to this decision. NTL remains committed, however, to widening the choice and diversity of sports programming: we will assess other opportunities in football as and when they arise.”

NTL currently holds a 6.3% stake in Newcastle United Football Club. At 11 o’clock this morning, shares in the club were unchanged at 78˝p.

NTL: 01252 402 000