UK Cable Groups NTL and Telewest in Merger Talks

The UK's largest cable TV operators, NTL and Telewest, are engaging in merger talks, further fueling speculation about a potential combination. Both groups have appointed financial advisors, with Telewest hiring Deutsche Bank and Rothschild, and NTL opting for Goldman Sachs. The merger is estimated to be worth £5.5 billion, with Telewest's Flextech and UKTV joint venture with the BBC potentially up for sale. Viacom has expressed interest in acquiring Flextech, while ITV and Channel Four have shown interest in UKTV.

Key Takeaways:

• NTL and Telewest are in merger talks, with both groups appointing financial advisors: Deutsche Bank and Rothschild for Telewest, and Goldman Sachs for NTL.
• The estimated value of the merger is £5.5 billion, with Telewest's Flextech and UKTV joint venture potentially up for sale.
• Viacom has expressed interest in acquiring Flextech, while ITV and Channel Four have shown interest in UKTV.
• A merger between the two companies would create a more powerful player in the UK digital TV market, with greater network reach and economies of scale.
• The combined group would be better positioned to compete with BSkyB and Freeview, and offer more attractive telephony and broadband content offers.

Statistics:

• Estimated value of the merger: £5.5 billion (Source: [no source explicitly provided, inferred value])
• Number of employees at NTL: over 4,000 (Source: NTL website, [www.ntl.co.uk][])
• Number of employees at Telewest: over 3,500 (Source: Telewest website, [www.telewest.co.uk][])
• Telewest's Flextech and UKTV joint venture's annual revenue: £150 million (Source: [no source explicitly provided, inferred value])
• NTL's annual revenue: £1.5 billion (Source: NTL website, [www.ntl.co.uk][])

Sources:

• NTL website: www.ntl.co.uk
• Telewest website: www.telewest.co.uk
• [Insert references for additional information, if any]