AOL and Liberty to battle it out for NTL

LONDON - American media giants AOL Time Warner and Liberty Media are set to fight it out for control of debt-ridden UK cable company NTL.

Last week, it was revealed that Liberty boss John Malone had held secret talks with NTL CEO Barclay Knapp about taking a major stake in NTL.



It has now emerged that Richard Parsons, the AOL CEO, has also held talks with Knapp. Last week, Parsons said AOL had a keen interest in the UK marketplace.



However, there is only room for one major new investor in NTL, bringing it down to a battle between AOL and Liberty and which of the two can offer NTL the best deal.



Malone has on his side his 25% stake in rival UK cable company Telewest. He is thought to favour a merger between the two, although NTL and Telewest have quashed speculation of a merger.



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