The merger of the two companies has long been talked of, but their massive debts and differences in accounting structures held them back.
NTL is currently going through a £6.7bn debt-for-equity swap with bondholders to help reduce its £12bn debt mountain.
Telewest is also negotiating with bondholders about a £3.6bn debt-for-equity swap to help reduce its £5bn debt as part of its restructure.
This alone would reduce Telewest's interest payments by £300m a year. The company has already cut 1,500 jobs this year.
The shake-up at Telewest follows the recent ousting of CEO Adam Singer, after disagreements with the Telewest board over management style.
Charles Burdick, the new managing director, has been charged with the task of ensuring the company breaks even once the debt restructuring takes place.
If Telewest and NTL emerge successfully from the debt restructuring process, it is possible that the two companies could enter talks early next year, once Telewest has lowered its debt, with a merger finalised by the end of 2003.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
