Ntl shareholders 'seeking $34 per share'

[popper]

http://www.dtg.org.uk/news/news.php?...ss=193&id=1892

Ntl shareholders 'seeking $34 per share'


The private equity consortium said to be considering an offer for UK cable giant ntl could have to pay at least $34 per share in order to persuade its leading shareholders to sell.

The Financial Times said the consortium, comprising Providence Equity, Blackstone, Cinven and Kohlberg Kravis Roberts, had held discussions with New York-listed ntl's CEO, Steve Burch, in what could amount to a $20bn debt and equity purchaseââ‚à ƒâ€šÃ‚¬ÃƒÂ¢Ã¢â€šÂ¬Ã‚ÂÂ�Europe's biggest buy-out.

The FT said the consortium had yet to make a formal bid and had yet to win over Bill Huff, the New York financier behind ntl's $6bn merger with Telewest last October.

Ntl went on to acquire Sir Richard Branson's Virgin Mobile for £962m in a deal that left Branson a 10.5% shareholder in the converged communications provider.

The FT said Branson had also to be won over, while The Sunday Times said Branson was understood to feel ntl was worth as much as $40 per share.

The Sunday newspaper said advisers including investment banks Credit Suisse and Merrill Lynch had been brought in to advise the consortium. Ntl shares closed on Friday at $25.99, down 2.5%.

Last week The Times reported that aggrieved ntl investors were set to write to Burch over the company's rejection last year of a £9bn takeover bid.

Earlier this month ntl virtually declared itself open to offers after admitting fierce competition caused it to lose 18,900 customers in its second quarter to June 30, ntl's first full quarter since merging with Telewest.

Burch, who last month unveiled ntl's pricing for its 'quadruple play' of digital TV, high-speed broadband, plus fixed and mobile telephony, said ntl was "confident in our ability to compete on value, quality, technology, service and brand".

Ntl is set to adopt the Virgin brand for its operations once Branson is convinced the cable operations' customer service record has been improved.
Lovelace Consulting | 29.08.2006

[Toto]

lol

Earlier this month ntl virtually declared itself open to offers after admitting fierce competition caused it to lose 18,900 customers in its second quarter to June 30, ntl's first full quarter since merging with Telewest.

got to love the press, what does "virtually declared" mean?

[James Henry]

*Cough*

$34 a share + assumed debt?

Just looking at the ntl shares before all the talk of buyout they were languishing around the $22 mark, valuing the company at less than $8 billion. Currently it's valued at $8.6 billion and still riding a crest from the buyout rumours.

Though I do struggle to understand financial types and this is the same company that said on 7th November 2001 "We believe that, based on our financial outlook, we are funded up to the point where the Company becomes cash flow positive at the end of 2003."

The company is still losing money, though you have to trawl your way through a few other measures showing profit before you finally get to the mention of net loss. It sucks the way they can say 'We made £xxx operating income, £xxx operating cash flow, oh but please ignore the interest we're paying on debt that means we actually lost £xxx'.

Operating income in the second quarter was £6.3 million, compared to £6.4 million in the second quarter of 2005. The increase in OCF arising from the acquisition of Telewest was offset by additional depreciation and amortization, also arising from the acquisition of Telewest, together with an increase in other charges. Other charges of £12.1 million in the second quarter represent old NTL employee termination and property exit costs in connection with the merger integration restructuring program.

Loss from continuing operations in the second quarter was £195.8 million, compared to £66.1 million in the second quarter of 2005. The increased loss was driven primarily by an increase in interest expense from the indebtedness incurred to acquire Telewest and an increase of £81.3 million in foreign currency transaction losses.

Net loss was £195.8 million in the second quarter compared to net income of £73.5 million in the same quarter last year, which included a £141.4 million gain on the disposal of our Ireland business.

Cool, so not only did ntl:Telewest lose loads of money but even taking into account the £141.4 million from sale of Ireland business the loss from the company is increased compared to last year, largely due to increased interest expense. Someone has a rather short memory about how ntl got themselves into financial trouble before... ah yes it was debt from acquisitions. Hopefully the acquisitions are all done this time and this company can work on making some profit now

Then there's the minor matter of:

Since the end of the quarter, NTL has completed the refinancing of its debt following the acquisitions of both Telewest and Virgin Mobile. As a result, gross debt was £6,326 million.

Perhaps I'm missing something but I'd have thought if financial types were wanting to buy a company like ntl:Telewest they'd be wanting to pay a reasonable or even better a 'distressed' stock price considering it's a heavily loss making company with increasing levels of competition in every sector it operates, I wouldn't be looking at paying 50% premium on top of pre-speculation share price.

I still think that ntl:Telewest will be picked up as an ongoing concern by Comcast. I did suspect UPC would be interested then the ties of the ntl board to Comcast were shown to me For those unaware Comcast is the largest CableCo in the US.

Then again what do I know, I'm just some engineering geek

Business and maths never add up. and most loss figures you see are losses againsts gains that were estimated and not a negative in reality anyway.See even that dont make sense so how can anyone understand wtf is going on in reality.

At the end of the day as long as I can get internet at a decent speed at a decent cost and my telephone service then I honestly couldnt give a toss if NTL make money or not or who owns the company

Originally Posted by zinglebarb

Business and maths never add up. and most loss figures you see are losses againsts gains that were estimated and not a negative in reality anyway.See even that dont make sense so how can anyone understand wtf is going on in reality.

At the end of the day as long as I can get internet at a decent speed at a decent cost and my telephone service then I honestly couldnt give a toss if NTL make money or not or who owns the company

[James Henry]

You obviously gave a toss enough to post in this topic.

If you really don't care perhaps you wouldn't mind leaving those who are interested to discuss it?

[Toto]

Originally Posted by James Henry

You obviously gave a toss enough to post in this topic.

If you really don't care perhaps you wouldn't mind leaving those who are interested to discuss it?

Just giving his opinion James Henry, just like you do, for crying out loud.

[James Henry]

Originally Posted by Toto

Just giving his opinion James Henry, just like you do, for crying out loud.

I'm sorry I didn't realise 'I don't care' was an opinion. I just assumed he'd been smoking some of his user title.

Cheers for reminding me why I don't tend to post in here as much as I did though, between people posting inane crap and other people jumping down your throat for pointing it out I've better things to do with my time.

Will stick to other forums I guess. Sorry I tried to post something with some opinion in it I clearly should have just stuck to 'I don't care'.

[Pierre]

Originally Posted by James Henry

I'm sorry I didn't realise 'I don't care' was an opinion. I just assumed he'd been smoking some of his user title.

Cheers for reminding me why I don't tend to post in here as much as I did though, between people posting inane crap and other people jumping down your throat for pointing it out I've better things to do with my time.

Will stick to other forums I guess. Sorry I tried to post something with some opinion in it I clearly should have just stuck to 'I don't care'.

[jtwn]

Hasn't come back either

Probably reading in guest mode tho I bet; ready to correct me next time I anger him in a Cable v ADSL discussion

Originally Posted by James Henry

You obviously gave a toss enough to post in this topic.

If you really don't care perhaps you wouldn't mind leaving those who are interested to discuss it?

Actually the reason I posted was cuz of this thread and other posts in this thread. Often on on this forum opinions are stated that appear some members actually think we owe NTL something past paying the bills well here is news for you,We dont. NTL dont care about the customers they are a business like any other

[Womble]

Originally Posted by popper;

Ntl is set to adopt the Virgin brand for its operations once Branson is convinced the cable operations' customer service record has been improved.
Lovelace Consulting | 29.08.2006

Gotta love that statement.... Branson is going to be waiting a looooong time!
They've cut the field staff to the bone, cant see how the "Customer Experiance" will improve

[Pierre]

Originally Posted by Womble

Gotta love that statement.... Branson is going to be waiting a looooong time!
They've cut the field staff to the bone, cant see how the "Customer Experiance" will improve

It says a lot tha when the Network Techs were offered VR it was over subscribed.

People couldn't get out quick enough.

They announce they were getting rid of something like 110 techs, and ended up have to tell people they had to stay. You couldn't make it up.

[Escapee]

Originally Posted by Pierre

It says a lot tha when the Network Techs were offered VR it was over subscribed.

People couldn't get out quick enough.

They announce they were getting rid of something like 110 techs, and ended up have to tell people they had to stay. You couldn't make it up.

And it's not the first time its happened.