According to reports, ITV chief executive Charles Allen has tabled a bid for Flextech to expand the terrestrial network's digital offering, so it has a stronger foothold in the market when the analogue signals are switched off, starting from 2008.
Liberty Global chairman John Malone has reportedly put in a bid for Flextech, according to The Times. Malone, who was a controlling shareholder in Flextech from 1994, has always expressed an interest in going back to the business he originally backed.
An ITV spokesman refused to comment on the situation and Liberty Global could not be contacted at the time of writing.
Telewest received first-round offers for the Flextech on Friday, with US media giant Viacom, BSkyB, RTL and Hallmark TV-owner Sparrowhawk reportedly putting in bids.
RTL, the German broadcaster that also owns terrestrial channel Five, is current favourite to land the business.
Analysts predict the business could be worth as much £1bn. Last month, Telewest said that profits at Flextech were up 14% from the second quarter of 2004 to £32m this year.
As well as Living, Bravo, Challenge and Trouble, which feature programmes such as the top rated 'Alias' and 'Will & Grace', Flextech owns a 50% stake in nine UKTV channels with the BBC, including UKTV Gold and UKTV Style.
Telewest is exploring the sale of Flextech, which will only be sold to the right bidder at the right price, ahead of a mooted £5.5bn merger with rival cable group NTL.
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