By Jo Best, 8 December 2005 15:40
NEWS
Telewest, currently in the process of being taken over by NTL, may acquire its would-be buyer in order to save £100m.
Neil Smith, Telewest's finance director, told a conference that the NTL-Telewest deal could be reversed, allowing Telewest to buy NTL, without any economic impact on the deal, the Financial Times reports.
Both companies are now reworking the legal terms of the deal to keep the financial arrangements the same whilst flipping the buyer-acquisition relationship a change that would save a £100m payout to the BBC.
The BBC and Telewest are joint partners in UKTV and, as NTL was to have taken over Telewest's role in the partnership, the BBC is seeking the £100m as a change of control payment. The plans should be announced before the end of the month.
The BBC did not immediately respond to requests for comment.
NTL, which saw its overtures to Virgin Mobile snubbed this morning, may yet buy out the firm. Virgin head Sir Richard Branson said on the BBC's Today programme that he believed a deal with the company is "quite close".
In order to post a comment you need to be registered and logged in.
Log in or create your silicon.com account below