ST
Weekend reports suggest that cable company Telewest is to put its content division Flextech up for sale this week with a price tag of at least £800m.
The disposal of the business, which owns the channels Living TV and Bravo, is a key step towards the merger of Telewest with rival NTL later this year.
Potential bidders for Flextech - also the joint owner of UKTV, along with the BBC - are likely to include ITV, Channel Five owner RTL, American firm Viacom and a clutch of private equity players such as Apax and 3i.
A sale process is now seen as the preferred route for Telewest, following an investigation into the merits of a stock market flotation or sale of the cable channels, which also include Trouble and Challenge.
But a report in the Sunday Telegraph said the process had been overshadowed by NTL's strong objections to a disposal to a free-to-air TV competitor, such as ITV or the German-owned broadcaster RTL. It is concerned that Flextech's TV content could be used to damage the prospects of the merged pay-TV cable group.
The merger of Telewest and NTL has long been touted after both groups completed debt restructurings in the last year. NTL is expected to be the senior partner in the £5.9 billion cash and shares tie-up.
The disposal of the business, which owns the channels Living TV and Bravo, is a key step towards the merger of Telewest with rival NTL later this year.
Potential bidders for Flextech - also the joint owner of UKTV, along with the BBC - are likely to include ITV, Channel Five owner RTL, American firm Viacom and a clutch of private equity players such as Apax and 3i.
A sale process is now seen as the preferred route for Telewest, following an investigation into the merits of a stock market flotation or sale of the cable channels, which also include Trouble and Challenge.
But a report in the Sunday Telegraph said the process had been overshadowed by NTL's strong objections to a disposal to a free-to-air TV competitor, such as ITV or the German-owned broadcaster RTL. It is concerned that Flextech's TV content could be used to damage the prospects of the merged pay-TV cable group.
The merger of Telewest and NTL has long been touted after both groups completed debt restructurings in the last year. NTL is expected to be the senior partner in the £5.9 billion cash and shares tie-up.