U.K. cable firm NTL to acquire Telewest

updated 9:03 a.m. ET Oct. 3, 2005

LONDON - NTL Inc. is acquiring fellow British cable-TV provider Telewest Communications in a $6 billion deal to create Britain's second-largest communications company, the two firms announced Monday.

Telewest shareholders will receive $16.25 per share in cash and 0.115 NTL shares for each Telewest share, valuing Telewest at about $6 billion.

The combined companies will have nearly 5 million residential subscribers and annual revenue of 3.4 billion pounds ($6 billion).

"This is a transforming transaction for the U.K. cable industry. It marks not just the culmination of a decade of consolidation but, more importantly, the creation of a new competitive force in the communications and entertainment sectors in the U.K.," said Simon Duffy, Chief Executive Officer of NTL.

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