CABLE television firm NTL is poised to revive hopes for a merger with struggling rival Telewest, which is in the middle of a £3.5 billion debt restructuring, according to analysts.
NTL, which has just emerged from Chapter 11 bankruptcy, will signal its growing confidence next week when directors are expected to ask shareholders to subscribe to as much as £400 million of new shares.
Analysts said the cash has been earmarked to redeem some £225m of bonds, and will also provide working capital for NTL’s operations in the UK.
Last week, Telewest reported a first-half net loss of £201m after taking account of £69m gains on dollar- denominated debts.
NTL is due to report its second-quarter results tomorrow, and analysts have pencilled in pre-tax profits of around £165m, up from £156.5m in the first quarter. The group has seen its shares quadruple in value to around £24.80 since April and there has been growing speculation NTL might be planning an audacious swoop on Telewest once its rival’s financial position becomes clearer
NTL, which has just emerged from Chapter 11 bankruptcy, will signal its growing confidence next week when directors are expected to ask shareholders to subscribe to as much as £400 million of new shares.
Analysts said the cash has been earmarked to redeem some £225m of bonds, and will also provide working capital for NTL’s operations in the UK.
Last week, Telewest reported a first-half net loss of £201m after taking account of £69m gains on dollar- denominated debts.
NTL is due to report its second-quarter results tomorrow, and analysts have pencilled in pre-tax profits of around £165m, up from £156.5m in the first quarter. The group has seen its shares quadruple in value to around £24.80 since April and there has been growing speculation NTL might be planning an audacious swoop on Telewest once its rival’s financial position becomes clearer
