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ntl-Telewest merger to be reversed?
# 8 December 2005, 16:50 by Nemesis
As has been well documented here, ntl are in the process of taking over Telewest …. or are they? It would appear that takeover may be reversed to get out of a £100m payment required for a change of contract with the BBC.
The BBC and Telewest are joint partners in UKTV. With ntl taking over Telewest, they would automatically assume Telewest’s role in the partnership. The BBC is seeking the £100m as a payment for a change of the control.
Telewest’s finance director, Neil Smith, has stated that the ntl-Telewest deal could be reversed, meaning Telewest takeover ntl. This would obviously negate the need to pay the BBC £100m.
Both ntl and Telewest are reworking the legal terms of the deal to keep the financial arrangements the same whilst flipping the relationship.
Details of any changes should be announced before the end of the month.
Source http://www.silicon.com