C&W and Bell Canada in cable merger with Jones

Cable & Wireless and Bell Canada are to merge their UK cable television and cable telephony interests with those of Jones Cable, forming Britain's third-largest cable company behind Nynex and Telewest.

The joint company, to be known as BCE Telecom International Cable, will seek a listing on the London and New York stock exchanges.

Cable & Wireless and Bell Canada are already partners in BCETI Cable, and C&W has interests in existing cable franchises held by Jones.

Rod Olsen, finance director of C&W, said: 'This alliance recognises the changes taking place in today's telecommunications industry. It strengthens Cable & Wireless' position in the provision of communication, information and entertainment services and complements the activities of our subsidiary, Mercury Communications.'

The company would not give details of the timing and size of the share offering or the value of the amalgamated cable group.

Alan Bates, managing director of Jones Cable in the UK, is expected to become chief executive of the joint company. Jones UK is part of Jones Intercable, one of the largest cable operators in the US. Bell Canada has entered into an agreement to buy 30 per cent of Jones Intercable.

The deal underlines the trends towards mergers and partnerships in the cable business. BCETI Cable is expected to be the first of a series of cable companies to seek a listing on the London stock market this year and next.

Richard Woollam, director general of the Cable Television Association, said the planned public offering represented a long-awaited opportunity for UK investors in the cable industry.