Ntl plays down speculation of a separate float

Cable firm says float of its business arm is not on the cards

Cable TV giant ntl has played down reports that it is considering floating its business arm, but says it does feel that the company has been unfairly valued following recent analyst estimates.

Citing sources familiar with the company, the Observer reported Sunday that ntl is considering a flotation of its business division. The report suggested that ntl would look to float 20 and 30 percent of the division.

"It's not on the radar," a spokesman said Monday. "But we do think that there is a lot of hidden value in the company."

Ntl is Britain's biggest cable TV company and recently revealed plans to shake up the Internet access market in the UK by offering cut-price broadband Internet services. The company currently offers broadband via cable modem for £39.99 but is trailing a range of services including a high-speed service for £25 a month. The move could spark a price war in the broadband Internet market and last week BT said it would consider price cuts to its ADSL service in the coming months.

Ntl said last week that it was on track to reach its target of 500,000 customers for its digital service by the end of the year. According to the company it had 325,000 digital customers at the end of September, up from 230,000 in the second quarter, and a total of 3.1 million customers for its telephone and cable TV services in Britain and Ireland.

Reuters contributed to this report

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