Vodafone threatens NTL with legal action

NEWS Vodafone is threatening to take NTL to court, claiming the cable company has overcharged it for line rental. NTL said it will "vigorously defend" the claim but could face serious financial repercussions if the defence is unsuccessful. The value of the claim has not been revealed. The dispute came to light in a US Securities and Exchange Commission filing made by NTL on Thursday. The filing said: "It is possible that if [Vodafone's] claim were successful, it could have an adverse effect on NTL's financial position." A spokeswoman for NTL is quoted in reports as saying: "We don't believe there's any merit in this claim but we are hopeful things will be resolved satisfactorily between us." NTL filed for Chapter 11 bankruptcy protection in May after running up debts of $17.5bn.