Telewest: no comment on Chello
- Added:
- May 31, 2000
According to press reports, the deal - which would provide Chello with access to the burgeoning UK market - have prompted the internet group to postpone its global IPO, initially scheduled for the second quarter of the year.
The flotation, which would see Chello take on dual listings on the Amsterdam Stock Exchange and Nasdaq, was initially announced in March and, at the time, was expected to value the company in the region of 10bn.
Following the recent change of heart towards technology stocks, however, the group has been under pressure to uphold the previous valuation, which a UK link-up would help to buoy.
Telewest is even - reportedly - considering scraping its own broadband ISP Blueyonder if it receives a sufficient stake in the Amsterdam-based broadband cmpany.
Telewest refused to comment on today's report, saying: “We do not comment on press or industry speculation”.
United Pan-European Communications, the European cable operator that has a controlling interest in Chello, has made no secret of the fact that it is looking for a UK strategic partner for its subsidiary, but the group also refused to confirm the identity of potential partners.
Other UK contenders for a strategic alliance with the Dutch-based broadband ISP are said to include business telco and ISP COLT.