26 September 2000

Digital broadcaster ONdigital has begun negotiations with leading telecommunications and cable companies over a strategic investment.

The broadcaster, currently owned by Carlton Communications and Granada Media, is hoping that the sale of a minority stake to a telecoms company would extend its reach and strengthen investor confidence before a flotation estimated at £2 billion.

It is believed that BT, Orange and Telewest have been involved in the discussions.

One insider claimed, “ONdigital is a very inexpensive way of getting into the pay-TV market. Telecoms companies have been looking at the company in a very excited way”.

News source: Financial Times