Number two in the UK cable network rankings, Telewest Communications, is expected to announce this week its intention to take a10% stake in Chello Broadband. Chello, a subsidiary of Netherlands-based European cable TV network United Pan-Europe Communications, provides Europewide high-speed internet services.

No-one is saying how much Telewest’s stake will be worth, although insiders suggest that UPEC may take a significant stake in Telewest as part of the deal.

Given the major shareholdings in the UK company of Microsoft and AT&T-owned Liberty Media Group (both with major web interests of their own) a cosy technology alliance could be in the making – a development that would not be without interest to EC competition authorities.

News source: New York Times