updated 10/3/2005 9:03:51 AM ET 2005-10-03T13:03:51

NTL Inc. is acquiring fellow British cable-TV provider Telewest Communications in a $6 billion deal to create Britain's second-largest communications company, the two firms announced Monday.

Telewest shareholders will receive $16.25 per share in cash and 0.115 NTL shares for each Telewest share, valuing Telewest at about $6 billion.

The combined companies will have nearly 5 million residential subscribers and annual revenue of 3.4 billion pounds ($6 billion).

"This is a transforming transaction for the U.K. cable industry. It marks not just the culmination of a decade of consolidation but, more importantly, the creation of a new competitive force in the communications and entertainment sectors in the U.K.," said Simon Duffy, Chief Executive Officer of NTL.

Copyright 2005 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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