NTL Buys Comcast UK For £363m

Comcast Corporation has announced that its Comcast UK division is to be bought by UK telecommunications company NTL for $600 million (£363 million). Comcast UK shareholders are to receive 0.3745 shares of NTL common stock for each share of Comcast UK common stock held.

Comcast has stipulated that if the average closing price of the NTL stock for a specified period of time before a Comcast UK shareholders meeting is less than $26.70, then it can halt the deal.

Amongst Comcast UK’s assets are Cable London and Birmingham Cable Corporation Limited. At present Comcast UK holds a 50% share in Cable London with the other half being held by Telewest Communications. It also has a share in Birmingham Cable. Telewest has the right to buy its share of the cable franchises from Comcast UK in the light of the Comcast/NTL merger.

If Telewest do not acquire Cable London and/or Birmingham Cable they can be effectively sold to NTL. Comcast says that the deal will proceed regardless of what happens to the Cable London franchise.

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