Microsoft happy with solution on Telewest

BRUSSELS: Microsoft Corp. said on Friday it was satisfied with a deal with

the European Commission under which it agreed to limit its investment in

Telewest Communications to a minority stake.

"We believe it's a good solution for everyone," said Microsoft

senior director for European law and corporate affairs John Frank speaking on

telephone from Paris.

"It reduces our management rights but we concluded that they were not

centrally important for our strategic goals as an investor in Telewest. It's a

good way to deal with everyone's concerns and move forward."

The US software giant is planning to buy Mediaone's 23.7 per cent stake in

Telewest in a $3 billion deal which was originally supposed to give Microsoft

joint control of the company with Liberty Media Group, a subsidiary of AT&T

Corp.

Following pressure from the European Commission, Microsoft said on Friday it

would keep its 23.7 per cent stake, but would break all structural links with

Liberty Media and give up any rights which would have given it decisive

influence over decisions at Telewest.

(C) Reuters Limited 2000.