Telewest shares were up by as much as 13.46p to 26.5p at 10.45 this morning, having fallen to as little as 15.75p on Thursday last week, following speculation that shareholder Liberty Media was backing a merger between Telewest and ailing rival NTL.
However, these fears were scotched yesterday by a research note from broker Bear Stearns, which said that the company was not "in desperate need, it is fully funded. The funding fears are just overdone".
The stock has also suffered amid fears that the company could be £340m short in funding and that it might be considering restructuring its £5bn debt pile.
However, a note from Telewest's joint broker Dresdner Kleinwort Wasserstein advised its clients to use a possible refinancing of the company as a buying opportunity.
Telewest has a £2.5bn banking facility. The remainder of its debt is made up of bonds, debentures and convertible bonds.
The company is seen as one of Europe's strongest cable companies. Its shareholders include Liberty and Microsoft, and it has been reported that AOL Time Warner is interested in bidding for a share of the company.
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