Telewest falls to brink of FTSE100

Cable firm left to ask 'but, why?'...

Shares in cable company Telewest fell 12 per cent yesterday, edging it closer to relegation from the FTSE100. However, despite obvious pessimism on the markets regarding the company's position it has reported quarter-on-quarter growth. Telewest is signing up broadband internet subscribers to its Blue Yonder service at a rate of 2,000 per week - but investors seem unable to see beyond its £4.8bn debts and the general state of economic malaise which has spread to the cable sector. However, according to the Financial Times, Telewest is relatively healthy compared to its rivals, such as NTL who does not enjoy the safety of being fully-funded to profitability, and predicts it will break even by 2003. Share in Telewest closed at 40p yesterday to give it a value of £1.2bn - considerably down on a peak of £12.9bn last March.