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NTL Purchases Telewest

Entertainment and communications companies Telewest and NTL have recently become one entity. NTL has recently added Telewest to its family, a large part of the U.K. communications industry. This purchase has proven to be a great success for all involved.

NTL Inc. has acquired British cable-TV provider Telewest Communications in a $6 billion deal to create Britain`s second-largest communications company. As part of the deal, Telewest shareholders will receive $16.25 per share in cash and 0.115 NTL shares for each Telewest share, valuing Telewest at about $6 billion.

The combined companies will have nearly 5 million residential subscribers and an annual revenue of 3.4 billion pounds ($6 billion). Simon Duffy, Chief Executive Officer of NTL, says, `This is a transforming transaction for the U.K. cable industry. It marks not just the culmination of a decade of consolidation but, more importantly, the creation of a new competitive force in the communications and entertainment sectors in the U.K.`