Merger Creates New TV Giant; This Is a Momentous Day for the Cable Industry, with the Creation of a New Competitive Force in the Communications and Entertainment Industries in the UKSimon Duffy

The Birmingham Post (England), October 4, 2005 | Go to article overview

Merger Creates New TV Giant; This Is a Momentous Day for the Cable Industry, with the Creation of a New Competitive Force in the Communications and Entertainment Industries in the UKSimon Duffy


Byline: By Steve Pain Deputy Business Editor

Cable operators Telewest and NTL have at last announced plans to merge in a deal theat creates the UK's second largest communications company.

The long-awaited $6 billion (pounds 3.4 billion) merger, which has been forecast in the City for many months, will bring about the largest provider of residential broadband services in the United Kingdom with 2.5 million subscribers.

The tie-up will be structured as a takeover of Telewest by NTL.

It ends months of speculation and will enable the enlarged company to compete more effectively with telecoms giant BT and satellite broadcaster BSkyB.

'This is a momentous day for the cable industry, with the creation of a new competitive force in the communications and entertainment industries in the UK,' said NTL chief executive Simon Duffy.

He said that as there is virtually no overlap between NTL and Telewest, the United Kingdom's competition authorities were unlikely stand in the way of the deal, which should close in the first quarter of 2006.

'There's not a single household that can be connected to the network through both companies, so there are no obvious competition issues,' he said.

Under the terms of the approved takeover, Telewest investors will receive $16.25 (pounds 9.23) in cash and 0.115 new stock in NTL for each share they own.

Telewest shareholders will be left with 25 per cent of the enlarged group following the transaction.

NTL said it would tap the corporate bond market for pounds 1.8 billion to fund the takeover, with a further pounds 500 million coming from its cash pile.

It added that the merger would result in total savings of pounds 1.5 billion after integration costs.

By reducing capital expenditure and other administrative burdens, NTL also expects an improvement in annual free cash flow of some pounds 250 million by 2009.

Due to complications stemming from both groups' financial restructuring in 2003, Mr Duffy said there were no plans to change the group's primary listing from New York. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Merger Creates New TV Giant; This Is a Momentous Day for the Cable Industry, with the Creation of a New Competitive Force in the Communications and Entertainment Industries in the UKSimon Duffy
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.