Out-Law / Your Daily Need-To-Know

The European Commission is considering blocking Microsoft’s bid to take over UK cable company Telewest. The Commission has written up a draft decision on the matter which it will present at a meeting of the its merger advisory committee on 14 July.

It began an investigation into the deal earlier this year following fears that the £3 billion transaction would have an adverse effect on the digital cable market in Europe. If the bid is successful, it will result in Microsoft owning about a 30% share of Telewest which would give it joint control of both Telewest and Liberty Media.

The acquisition would be in addition to Microsoft's existing stake in NTL, which in turn has bought over Cable & Wireless, the largest consumer cable provider in the UK. Microsoft also owns a share of United Pan-European Communications, a cable company based in Holland.

Contrary to rumours, the Commission's proposal to block the current bid for Telewest has not been confirmed. A spokeswoman for the Commission stated: “there is no decision until the Commission has decided on it. It’s completely premature to say the Commission is to block the deal”.

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