AOL reportedly in talks with NTL

AOL Time Warner, the world's biggest media company, is reportedly in talks with NTL, the UK's biggest cable operator, about a partnership in Europe.

According to reports, the US group is thought to be interested in a broadband distribution deal and has approached NTL about forming an alliance.

AOL Time Warner does not have cable networks in Europe. An alliance would give it access to NTL's networks, allowing it to share revenues from broadband customers in exchange for its content.

NTL, which is listed in New York, has 8.5 million subscribers in the UK, France, Switzerland, Germany and Sweden and passes 20 million homes. Last week it raised £388m of financing from GE Capital, helping ease worries about its financial position.

The Financial Times ft.com said the deal would be the first sign that AOL Time Warner wants to expand beyond the US.

The company was formed by the completion of a £72bn merger of America Online and Time Warner earlier this year.

The group first approached British Telecommunications, according to reports, but BT, the dominant UK network provider, could not deliver the required broadband capabilities.

Steve Case, AOL Time Warner chairman, last month raised hopes of rapid expansion into Europe as the company set itself the goal of raising international revenues from 17 to 50% over the next 10 years.