UPC Buys German Cable Assets for 1 Billion Euros

LONDON (04/03/2000) - Dutch cable communications company United Pan-Europe Communications NV (UPC) will acquire German broadband operator EWT/TSS for 1 billion euros (US$957 million), it announced today.

The deal will give UPC 100 percent ownership in a deal consisting of 25 percent cash and 75 percent stock in a new subsidiary, to be called UPC Germany GmbH.

After the purchase, the Stritzl family, who currently run EWT/TSS, will hold 49 percent of the stock in UPC Germany, a UPC spokeswoman confirmed.

Augsburg, Germany-based EWT is Germany's fourth largest broadband cable operator, according to UPC, and has access to 1.1 million [M] homes with 650,000 current subscribers.

The access to EWT/TSS subscribers will be a significant gain in reach for Amsterdam-based UPC, which claims it can reach 9.2 million homes. According to the company's most recent figures, it has 6.1 million basic cable subscribers, in addition to almost 280,000 residential and business telephony customers and nearly 175,000 Internet subscribers.

Microsoft Corp. also holds a 7 percent stake in UPC.

UPC, in Amsterdam, can be reached at +31-651-367049 , or on the Web at http://www.upccorp.com/.

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