SEC delay sets back £400m Nynex float

Nynex CableComms, the second-largest UK cable telvision company, is to postpone its international share offering following delays in a review of its draft prospectus by the US authorities.

The company, which plans to list its shares on Nasdaq and in London, said marketing would not proceed until the Securities and Exchange Commission had approved the document.

Nynex CableComms, which is owned by Nynex of the US, plans to raise £400m through the offering, valuing the company at about £1.3bn.

It had planned to start an international roadshow next week but marketing is unlikely to start until May. Completion will now be delayed until June.

The delay, although blamed entirely on a technical hitch, raised some eyebrows in the City with analysts asking why there should be any delay at the SEC.

There is also a view that the company may have become nervous following a drop in the share price of Videotron UK, another UK cable firm that listed on Nasdaq last week.

One analyst said: "There may be an indication that fatigue is setting in among Nasdaq investors. The next test of sentiment will be the General Cable flotation announced in March."

General Cable is in the throes of marketing an international share offer with a view to raising £230m. It also plans to list its shares in London and on Nasdaq.

Speculation that interest in the cable industry is waning has been fuelled by the lacklustre performance of shares in Telewest, which was listed at the end of last year.

However Nynex said that it remained relaxed about its plans.

Eugene Connell, president and chief executive of Nynex CableComms, said earlier this week that interest in the UK cable sector was robust. He rejected the notion that too many companies were coming to the market at once.

"There is very strong interest in this segment and we have an enormous amount to offer the investment community," Mr Connell said.

Bell CableMedia is also seeking a listing in London later this year, although no timetable has been set. The company, which has appointed Kleinwort Benson and Salomon Brothers as its advisers, was originally expected to come to the London market in the summer.

Separately, Nynex CableComms confirmed the appointment of Sir Christopher Bland, former chairman of LWT, as deputy chairman. Sir Christopher is also chairman of NFC and Life Sciences International.

Sir Michael Checkland, until 1992 director-general of the BBC, has also become a non-executive director, as has John Rennocks, finance director of PowerGen.