Institutional investors made a profit by selling shares in UK cable operator Telewest Communications stock last week, no doubt taking advantage of its high share price, and ahead of its absorption of Flextech plc, which also saw market activity.

Cox Communications sold its 13 per cent stake in Flextech on March 15, “in a private placing” for $520 million. Cox invested heavily in the UK during the early years of multichannel TV in 1992-93 as one of the original investors in UK Gold and UK Living, and then converted those stakes into stock in Flextech when Flextech acquired the channels.

Flextech’s price hit an all-time high ( pounds20.98) during the week amid rumours that it might also be interested in buying financially troubled publisher Dorling Kindersley.

Flextech’s price was also helped by its end of year preliminary results (to December 31 1999), announced last week. The company reported improved profits (as a result of selling off a portion of its TV Travel Shop) of pounds14.8 million. If this special item were excluded then Flextech’s losses would have grown from pounds5.1 million to pounds9.7 million. Revenues overall were up 6 per cent to pounds161 million.

However, chairman Adam Singer said the company was doing well out of interactive services, with revenues from this sector growing five-fold to pounds1.8 million. He also reported that UKTV, its joint venture operation with BBC Worldwide would move into profit this year.