NTL has confirmed it is in the process of reviewing its strategic plans, which could result in the sale of the group’s television and radio broadcasting business.
According to the
Financial Times, the sale of the UK cable operators ‘tower’ business is expected to generate at least £1.2 billion.
A spokesperson confirmed that NTL is working with investment bank, Goldman Sachs, who is advising on strategic options available to the group. However, although steps have been made to legally separate the broadcast business, no decision about its sale has been made and an outcome is not expected until the end of this year.
People familiar with the company’s plans have, however, confirmed that NTL’s financial advisers were putting the finishing touches to a document regarding the towers business, said the Financial Times.
The group, which emerged last year from Chapter 11 bankruptcy, saw revenues for the second quarter of 2004 jump to £397.8 million, driving profit loss down to £7 million from £51 million in 2003 (see NTL Losses Down As Customer Base And Revenues Grow).
Talks of the sale have once again sparked rumours of Telewest merger negotiations. Shareholders at both NTL and Telewest are keen to see an acquisition by NTL, which could result in a single company with a market value of £7 billion (see NTL And Telewest Shareholders Urge $7 Billion Merger).
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