Microsoft plugs $300 mil into UPC

Software giant hooks into Euro cable

By ADAM DAWTREY

LONDON -- Microsoft, the computer software giant, has made its second foray within a week into the European cable TV business, investing $300 million in United Pan-European Communications.

This follows Microsoft's acquisition of a 9% stake in U.K.-based NTL for $500 million.

Amsterdam-based UPC is Europe's largest private cable TV operator, with systems in 11 countries. It is launching a public offering next month of 32.5% of its stock, which is expected to raise around $1.2 billion, including the $300 million committed by Microsoft. That will give Microsoft roughly 8% of the company.

Microsoft will work closely with UPC and NTL, a NASDAQ-quoted company that is the U.K.'s third largest cable operator, to deliver Internet services via cable, and other interactive services.