Telewest boosts market share offensive through bid for General Cable

Telewest Communications, Britain's second largest cable company, took another step towards building market share, with a GBP649 million (about HK$8.47 billion) agreed bid yesterday for General Cable.

In a move aimed at putting pressure on market leader Cable and Wireless Communications, the loss-making and heavily indebted Telewest said it was hoping to reap substantial benefits such as economies of scale, increased purchasing power, and operating efficiency.

'With a national network and local broadband access to approximately 24 per cent of all UK households, the combined group is expected to be a more powerful competitor in business and residential markets,' it said.

The new group will have 849,000 cable TV customers, 1.1 million residential telephone customers and 167,000 business telephone customers, with interests in 43 franchises covering about 5.8 million homes.

Analysts said the move heralded a wave of further consolidation expected in the overcrowded British cable market.

Telewest said it intended to make a pre-emptive issue to help pay for General Cable, raising about GBP241 million.