NTL to Buy Cable TV Unit of Britain’s CWC

NTL Inc., backed by France Telecom, agreed to buy the cable television business of Cable & Wireless Communications for about $10 billion.

The deal doubles NTL’s customers in Britain to 2.8 million, or about two-thirds of the residential cable market. New York-based NTL, the biggest cable TV company in Britain, will pay about $10 billion in cash and stock and assume $3 billion in debt. France Telecom is investing a total of $5.5 billion to buy as much as 25% of NTL.

Created by a group of New York-based entrepreneurs in 1993, NTL entered the British cable market five years ago as CableTel. Its shareholders include Microsoft Corp. and Comcast Corp. and funds managed by Goldman Sachs Group.

Both transactions depend on approval from Bell Atlantic Corp., the U.S.’ biggest local phone company, which owns 18.5% of CWC. Bell Atlantic’s board will meet today.