A major step in the consolidation of the cable communications world is expected as NTL and Cable & Wireless Communications (CWC) are believed to be considering a bid for Telewest, the UK's second largest cable operator.
Today CWC was reported to have approached two Telewest minority shareholders to create closer ties, such as swapping or combining local franchises.
Telewest and NTL have held merger talks before that have fallen through, but CWC and NTL are believed to be keen to purchase Telewest and share the proceeds.
John Matthews analyst at Ovum, said: "The likelihood is that one would bid in its own right. Both CWC and NTL would benefit from further franchises but I would be mildly surprised if Telewest were willing."
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