Cabler NTL revealed as Newcastle bidder
Manchester outcome may greenlight takeover
NTL announced it has bought 6.3% of Newcastle from the club's main shareholder, Cameron Hall Developments. In addition, Hall has agreed to sell its remaining 50.8% stake in the popular northern England club if NTL decides to launch a takeover.
Bid speculation
Earlier in the week, Newcastle confirmed it had received a preliminary approach worth $265 million. Speculation then pointed to the ITV companies Carlton, Granada and United News & Media, as well as Time Warner. No one was considering a cable company. (Daily Variety, Dec. 16)
NTL said the decision to launch a takeover depends on the outcome of the Monopolies and Mergers Commission's inquiry into satcaster BSkyB's $1 billion bid for Manchester United, which most observers think will be allowed to proceed. That report is due in March.
The Nasdaq-listed NTL, however, denied that it was prompted to consider buying a English Premier League club because of BSkyB's move on Manchester.
A good investment
Steve Wagner, NTL's managing director, told Daily Variety: "It's a good investment in its own right. We need to be in the content business to be a player at the negotiating table."
Of the U.K.'s three cablers -- Telewest and Cable & Wireless Communications are the other two -- NTL is the most independent-minded. All three rely on BSkyB to supply them with key programming, but NTL, for one example, has Front Row, a rival pay movie service to Sky Box Office in a joint venture with Telewest.
It is almost certain that if NTL acquires Newcastle, the club will get its own TV channel, as Manchester already has with MUTV.
