EU to block Microsoft's Telewest stake

LONDON: The European Commission is set to recommend that Microsoft Corp. be

prevented from exercising joint control with Liberty Media Group over British

cable operator Telewest Communications Plc, the Wall Street Journal Europe

reported on Tuesday.

The newspaper said the EU executive had circulated a draft decision blocking

the move out of fear that the US software giant could corner the market for

digital television software.

Microsoft has numerous investments in European cable operators, including NTL

Inc. of the UK and United Pan-Europe Communications NV of the Netherlands.

The Commission is not expected to reach a final decision on the Microsoft-Telewest

case until later this month, the Wall Street Journal said.

The deadline for its review of the $3 billion transaction, which would give

Microsoft 30 per cent of Telewest, is August 4, the newspaper said.

The deadline for the companies to submit antitrust remedies is looming this

week, however, and the Commission has written a draft of a decision ruling that

the deal be blocked, according to people familiar with the situation, said the

newspaper.

"What they're offering isn't enough," said one person quoted by the

newspaper.

(C) Reuters Limited 2000.