NTL in partnership talks

Cable operator NTL has confirmed it was in talks with US-based media giant AOL Time Warner about a European partnership.

The discussions are thought to involve NTL allowing access to its European broadband distribution network in return for AOL’s content.

NTL, Britain’s biggest cable operator, said talks were at a preliminary stage with the Internet and media group.

A spokesman said: ‘‘Whilst it is true that we are in the early stage of talks with AOL about some potential joint activity, apart from an outline terms sheet, nothing has been agreed at this stage.’’

The US company has been looking to expand into Europe cable networks since the merger between America Online and Time Warner.

NTL, which has 8.5 million subscribers across the UK, France, Switzerland, Germany and Sweden, eased concerns about the state of its balance sheet on Friday by raising almost £300m of financing from GE Capital.

One analyst believed the alliance made sense for NTL, particularly if it manages to lever a payment for its slice of the partnership.

He said: ‘‘Potentially, it’s a very good deal for both parties but it all depends on what the terms and conditions are.

‘‘It will help NTL to market its broadband product and they can tell customers they have got a deal with AOL.’’