19 conditions attached to takeover of NTL

CABLE TV giant UPC’s €325 million takeover of NTL’s Irish operations was given the go-ahead by the competition watchdog yesterday — but it attached 19 conditions.

The Competition Authority said the takeover would be allowed to proceed but instructed UPC, a subsidiary of American company Liberty Global, to put in place a series of steps to address anti-competitive concerns. The authority said it was “specifically concerned” about cross-ownership interests linked to international media giant News Corporation and its BSkyB satellite broadcasting subsidiary.

Leading Liberty Global shareholder, John Malone, has an 18% stake in News Corporation.

Among the conditions imposed by the authority are requirements for a separate board of directors to supervise the day-to-day operations of the combined business of NTL Ireland and Chorus, the Limerick-headquartered cable operator already owned by UPC. The board will feature representatives from UPC and Liberty as well as an independent director drawn from a top Dublin law firm.

The authority has also sought assurances Mr Malone will not use his shareholding to influence any vote relating to the Irish operation.

The decision clears the way for UPC to take over NTL Ireland six months after the deal was agreed.