Telewest set for pounds 9.2bn Flextech takeover
Thursday 16 December 1999
Barring a last-minute breakdown, Adam Singer, the chief executive of Flextech, will become chief executive of the enlarged group. Tony Issley, the current chief executive of Telewest, will accept another position.
Flextech shareholders are expected to be offered new Telewest stock valuing Flextech at pounds 1.9bn - similar to the value of the company at the close of trading yesterday.
Flextech and Telewest were among the heaviest losers on the stock exchange yesterday. Telewest ended down 28.75p at 313.25p, a loss of 8.4 per cent, while Flextech slid 142.5p, or 10.5 per cent, at 1210p.
Mr Singer's promotion will mark a return to the cable group where he earlier served as a non-executive director. Prior to joining Flextech as executive chairman, Mr Singer was president of the international arm of Tele-Communications Inc. (TCI), the US cable giant that, with US West, co-founded Telewest in the early 1990s.
The merger will vertically integrate Telewest's broadband cable network, which passes more than 4 million British homes, with Flextech's portfolio of thematic television channels. In addition to basic cable channels, such as Living, Flextech is co-partner with the BBC in the development of pay-TV channels, and produces various websites and interactive channels.
Through Liberty Media, now the media content arm of AT&T, the TCI founder John Malone oversees a 37 per cent stake in Flextech and a 21.6 per cent stake in Telewest. The merger will see Liberty's stake in the enlarged group rise to around 30 per cent, putting Mr Malone on an equal footing with Bill Gates, the chairman of Microsoft, which owns a 29.9 per cent interest in Telewest.
The merger also highlights Telewest's growing concentration on building interactive television and e-commerce services. It has recently formed partnerships with Abbey National and others to offer digital TV subscribers access to financial transactions and other services.
- 2 Qataris pledge to expand Canary Wharf
- 3 #JeSuisEd: People share photos of themselves eating awkwardly in solidarity with Labour leader
- 4 Women think Irish men are the sexiest, survey finds
- 5 Florida couple forced to register as sex offenders for having sex on public beach
#JeSuisEd: People share photos of themselves eating awkwardly in solidarity with Labour leader
Florida couple forced to register as sex offenders for having sex on public beach
UK election candidates: 'Nasty party' Ukip faces fresh questions on eve of vote
Who should I vote for in the general election? Take The Independent's interactive quiz to find out which party's the right choice for you
Ohio 'Shawshank Redemption' fugitive Frank Freshwater arrested after 56 years on the run
In defence of liberal democracy
General Election 2015: Post-election 'shambles' looms as 70 per cent of voters say SNP 'should not be able to veto UK government policies'
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
General election live: Booths open at 7am across the country on polling day
iJobs Money & Business
£35 - 40k: Guru Careers: Our client has a new role for a Digital Marketing Exe...
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...