An announcement is expected later today to confirm that
Excite@Home, the high speed internet provider, will merge its
non-US assets with those of Chello, the European broadband internet
group, to provide high speed internet links in Europe, Japan,
Australia and Latin America.
According to speculative reports, the emerging group will be
known as Excite Chello and will have an estimated value of
E5.5billion. Along with Excite, the other major shareholder in the
new venture is expected to be European cable operator, United
Pan-Europe Communications (UPC).
Another speculated investor may be Liberty Media which recently
bought a controlling shareholding in UPC’s parent company, United
Globalcom.
The future of Chello has been a controversial issue since it
delayed its initial public offering on the Amsterdam stock exchange
planned for last month. The new deal with Excite would end
speculation on Chello’s current activities.
Both companies have declined to comment on the matter.
