Microsoft pulls execs off the Telewest board

NEWS Microsoft has withdrawn three of its executives from the board of UK cable company Telewest. In a statement, the company said it felt its interests would be better served without board representation. Microsoft currently holds a 23.6 per cent stake in Telewest and has the right to elect three non-executive directors to the board. However, the move gives rise to speculation that it could be preparing to sell its stake in the company. Indeed the statement hinted at such a sale in the future: "Microsoft expects to continue to evaluate Telewest on an ongoing basis and will continue to consider purchasing or selling Telewest securities or engaging in possible strategic transactions. "Microsoft has no current plan regarding any such transactions, but reserves the right to change its plans at any time." Telewest recently came under fire for awarding large bonuses to its directors despite a 90 per cent drop in its share price. The company also recently cut 1,500 jobs in an effort to save money. Speculation is also rife that it could sell its content arm Flextech to raise cash.