Viacom In Frame For Flextech Sale

Speculation surrounding a merger between cable giants Telewest and ntl continues to mount, with reports this morning suggesting that US media-owner, Viacom, could bid for Telewest’s Flextech television business, owners of Living TV, Bravo and Challenge.

The company also holds joint ownership with the BBC of the UKTV network of channels, including UKTV Gold and UKTV History.

Telewest is believed to have received valuations of around £500 million and £600 million for Flextech, although the company is understood to be keen on a price approaching £1 billion for the broadcaster.

The sale of Flextech has long been mooted, with speculation that the company may offload its TV interests rising periodically over the last few years (see Singer: Telewest Considering Disposal Of Flextech). Ntl are believed to favour a sell-off prior to any merger, however, as it believes Flextech would not fit well within the consolidated firm.

Any sale of the business would be contested by several investors, with Viacom likely to face RTL, owner of Five, and private equity groups such as Apax Partners.

Last week saw the two cable companies appoint advisers Deutsche Bank, Goldman Sachs and Rothschild to advise on any forthcoming merger. Deutsche Bank is also believed to be assessing Flextech’s value and advising on Telewest’s options for a future sale (see Cable Giants Begin Merger Talks).

NTL: 01256 752000 www.ntl.com Telewest: 0845 142 0000 www.telewest.co.uk