Deutsche in cable talks

June 26, 2001 Posted: 0708 GMT

LONDON (CNN) -- Deutsche Bank is in talks with three cable network operators that could lead to the sale of its cable business for $2 billion.

Europe's biggest bank is in talks with Liberty Media (LMG.A: Research, Estimates), owned by U.S. telecom giant AT&T (T: Research, Estimates), Callahan Associates International and NTL, The Wall Street Journal said.

The German bank is considering breaking up and selling its Tele Columbus cable-television business, which has 1.7 million customers and has the potential to connect a total of 2.2 billion to its network.

Deutsche is seeking $1,000 per subscriber, the WSJ said. Talks are at an early stage and negotiations are not expected to be completed until at least August.

Tele Columbus was bought by Deutsche Bank in 1999 through its subsidiary DB Investor. This business is charged with selling Deutsche Bank's industrial holdings in many of Germany's biggest companies and also acts as a private equity unit.

Deutsche had hoped to beef up Tele Columbus before selling or floating the business. Germany's biggest bank abandoned plans to buy Deutsche Telekom's cable assets. Falling stock prices also scuppered the German bank's plans to float the Tele Columbus.

Last week, Deutsche Telekom agreed to sell six German cable TV companies to U.S. cable network operator Liberty in a deal worth an estimated $4.7 billion.

Callahan bought two cable-companies and one went to NTL, Britain's biggest cable TV company.

	Want the full story? Search for free company info...
	Enter Company Name:-