It began an investigation into the deal earlier this year
following fears that the £3 billion transaction would have an
adverse effect on the digital cable market in Europe. If the bid is
successful, it will result in Microsoft owning about a 30% share of
Telewest which would give it joint control of both Telewest and
Liberty Media.
The acquisition would be in addition to Microsoft's existing
stake in NTL, which in turn has bought over Cable & Wireless,
the largest consumer cable provider in the UK. Microsoft also owns
a share of United Pan-European Communications, a cable company
based in Holland.
Contrary to rumours, the Commission's proposal to block the
current bid for Telewest has not been confirmed. A spokeswoman for
the Commission stated: “there is no decision until the Commission
has decided on it. It’s completely premature to say the Commission
is to block the deal”.
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