LONDON, March 30: Telewest Communications Plc said on Sunday it had agreed on terms for a 666 million pound bid for General Cable, marking another stage in the consolidation of the British cable television industry.The two said they were in advanced stages of talks likely to result in a recommended offer by Telewest that would value General Cable shares at 182.5P per share, based on the 94.5P closing price of Telewest shares on March 27.
Speculation of bids and mergers in the sector has continued following the creation of Cable & Wireless Communications Plc in a four-way merger last year, as operators struggle to reap a return on their start-up investments.
Telewest, Britain's second-biggest cable operator, earlier this month reported annual losses of 309.9 million pounds, up from 249.9 million pounds a year earlier -- though the company said it believed its losses had peaked.
General Cable said last month it was in talks with unnamed third parties that could lead to a bid --- believed to includeUS-listed NTL Inc which is seeking to bolster its position in the British cable TV and telecoms sector.
Telewest said earlier this month it was taking control of two major cable franchises in London and Birmingham from Comcast UK -- potentially spoiling a planned merger between NTL and Comcast.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
