AMSTERDAM -- U.S. investors Capital Group has increased its interest in cash-strapped cabler United Pan European Communications to 8.4% of ordinary shares.
Capital Group is now one of the largest shareholders in UPC, which is in discussions with bondholders regarding a debt for equity restructure. But an analyst with Dutch investment bank Labouchere told
Daily Variety that UPC's failure to make a debt interest payment in early February did not strengthen its position.
UPC was kicked out of the AEX, a listing of the top 25 trading companies in Holland, on Feb. 14 -- the day before Microsoft sold its 7.8% stake in the company.
Microsoft paid $300 million for its stake in 1999 but its value has dropped from highs of $2 billion to $6.7 million. The relationship has been strained since UPC stopped testing Microsoft systems for its digital set-top boxes and gave the job to Liberate Technologies instead.
Capital Group's 8.4% stake is held through its subsidiary, Capital Research and Management Company.
Contact the Variety newsroom at
news@variety.com