Out-Law / Your Daily Need-To-Know

An announcement is expected later today to confirm that Excite@Home, the high speed internet provider, will merge its non-US assets with those of Chello, the European broadband internet group, to provide high speed internet links in Europe, Japan, Australia and Latin America.

According to speculative reports, the emerging group will be known as Excite Chello and will have an estimated value of E5.5billion. Along with Excite, the other major shareholder in the new venture is expected to be European cable operator, United Pan-Europe Communications (UPC).

Another speculated investor may be Liberty Media which recently bought a controlling shareholding in UPC’s parent company, United Globalcom.

The future of Chello has been a controversial issue since it delayed its initial public offering on the Amsterdam stock exchange planned for last month. The new deal with Excite would end speculation on Chello’s current activities.

Both companies have declined to comment on the matter.

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