The auction for NTL Ireland enters its final phase this week with the European cable firm UGC and a rival bid fronted by Irish cable veteran John Riordan in a tight contest to buy the firm.
It emerged this weekend that the NTL's corporate advisers, Goldman Sachs, have told the two bidders that they have been ranked above two other competing bids fronted by the Irish media firm Setanta Sports and the telecoms entrepreneur Denis O'Brien.
These bidders are unlikely to be considered further unless problems with the other bids emerge during the final stage of negotiations over the next few weeks.
It is believed that UGC, which is controlled by the US media magnate John Malone, has submitted the highest bid for NTL, somewhere close to €300 million. However, John Riordan's bid, which is backed by the British venture capital firm Doughty Hanson, is also considered to be competitive, particularly if competition concerns arise.
UGC's bid for NTL Ireland will have to undergo an initial inquiry by the Competition Authority to determine if the deal would damage competition in the pay television market. If the Competition Authority were to order a second phase inquiry into the deal it is understood NTL would be able to pull out of an agreement and start negotiations with another party.
UGC already owns Chorus, the second biggest cable television firm in the Republic, with about 200,000 customers.
Sources indicated yesterday that Goldman Sachs could begin negotiations with a preferred bidder later this week. NTL Ireland supplies 347,000 homes with cable television services in Dublin, Galway and Waterford.
It is also upgrading its network to provide broadband internet services to subscribers.
Kerry-born Mr Riordan is making his third bid for the Irish cable firm. He is a former president and chief executive of UPC, which is now owned by the European cable giant, UGC, the other bidders for the Irish cable firm.
Mr Riordan has teamed up with the US venture capital firm Doughty Hanson to bid for NTL.
UGC operates in 14 countries worldwide and its cable networks reach approximately 15.5 million homes and over 11.1 million subscribers. Its largest operations are based in Europe, where it has 10.1 million customers.
