Telewest jumps on news of £125m funding

LONDON - Telewest shares jumped 13.4% to close at 46.5p last night on the news that the UK's second-largest cable operator has secured £125m in funding from financial services group GE Capital.

The money is part of a £2.3bn refinancing plan the company announced in March. The news was welcomed by investors because the company has been quiet on the subject since the March announcement.



The deal will reassure investors that Telewest will not suffer from a funding gap, contrasting with rival NTL.



NTL is reported to be axing 300 jobs from its Swiss subsidiary Cablecom -- believed to be up for sale -- in an attempt to calm investors' nerves about a potential funding gap and its £12bn debt mountain.



Telewest last month said that it expects third-quarter sales and Ebitda to meet analyst expectations as a result of increased sales on internet services.



The company is currently investing in services such as films and faster internet access aimed at increasing customer spending.




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