NTL Buys France's 1G for $57m

Computergram International, May 11, 1999

Cable operator NTL Inc has again demonstrated its determination to outbid its competitors with the acquisition of French cable operator 1G Networks from France Telecom SA for 350m francs ($57m), marking its first step into continental Europe. 1G currently provides cable television and telephony to 266,000 homes in Paris and on the south coast of the country, but NTL says it intends to begin offering internet services via its new subsidiary in the near future.

The acquisition is expected to be closed some time in the third quarter, subject to regulatory approval. NTL said it will invest in upgrading the cable infrastructure of its new company, but says this can be achieved at a fraction of the usual cost, due to the geographical density of the existing networks. Last week the firm bought Irish cable operator Cablelink Ltd, after overcoming a court injunction against the offer, which contained a promise to outbid rivals by 15%.