THE firm which operates East Lancashire cable television and telephone network has revealed it is in merger talks.

The talks between Cable & Wireless Communications and Telewest Communications had been rumoured to be under way since late last week and have prompted sharp rises in share prices.

The companies have now issued a statement confirming the talks which they described as being "at an extremely early stage".

The talks "may include among other things the transfer of various businesses of CWC and Telewest," the statement added.

Cable & Wireless owns a 53 per cent stake in CWC and the talks are thought to centre on it selling off the UK residential cable business of CWC to Telewest. A series of consolidations over the last year has left the UK cable industry dominated by three companies.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.