TELEWEST BUY EUROBELL FOR £200 MILLION

TELEWEST Communications, the UK-based digital media and telecoms group, are to extend their UK cable network with the acquisition of Eurobell from Deutsche Telekom for £200 million.
The total consideration for the acquisition of Eurobell is £250 million, inclusive of Eurobell’s £20 million cash and £30 million receivable from Deutsche Telekom. In addition, Telewest have agreed to pay Deutsche Telekom a further amount linked to Eurobell’s revenue in the year to December 31 2000, up to a maximum of £30 million.
Chief Executive of Telewest, Adam Singer, said: “We believe we’re in a great business and therefore more is good. Consequently the purchase of Eurobell is a terrific opportunity to expand our network by acquiring the last significant independent cable operator in Britain. The franchise areas fit perfectly with our existing network in southern England, providing us with even more customers in some of the most affluent parts of the country.”
Eurobell, cable telecommunication service providers, hold franchises in Crawley, West Kent and South Devon together with local access and a network across the South East linking international landing points in Cornwall and London.