Ntl Company Management Report

Introduction

Nowadays, finance is significant part for every business. In the world, whatever big business or small business nearly every enterprise have got their finance department to support their company run, so we can see that how important of ours module (financial management) for us to study. To write this assignment I will base on my presentation on in the first assessment to identify and evaluate the key financial performance of NTL Company. Primary, I will look for the agency theory to find how the NTL use the theory into practice. In addition merger and accusation is the key part for company news recently, moreover I will focus on the share price performance in last five years, lastly Competitors and risk factor will be mention in the end of my assignment. Before I wrote above topic, I would like to give a brief introduction of NTL.

Agency theory

Agency Theory argues that in the modern corporation, in which share ownership is widely held, managerial actions and departs from those required to maximize shareholder returns. (Berle and Means 1932). In agency theory terms, the owners are principals and the managers are agents and there is a agency loss which is the extent to which returns to the residual claimants, the owners, fall below what they would be if the principals, the owners, exercised direct control of the corporation (Jensen and Meckling1976). Agency theory specifies mechanisms, which reduce agency loss (eisenhardt 1989). These include incentive schemes for managers that reward them financially for maximizing shareholder interests. Such schemes typically include plans whereby senior executives with those of shareholders (Jensen and Meckling1976). As the Managing Director of ntl Stephen Beynon said, company strategic focus on bundle service and customer care within our consumer division has delivered improved revenne and customer growth .he also mentioned the company have plan to merger with televest and virgin, that means, the group of company could achive the largest market share in telecom market. Meanwhile, the combine companies have power to challenge with BT as a long-term plan, and also the merge company will create the maximum wealth for shareholder.

Merger and accusation

On 3 March 2006, ntl Incorporated completed a merger with Telewest Global, for about $6bn (£3.4bn). Inc creating the UK's largest provider of residential broadband and the UK's leading provider of triple-play services. The company operates under the name of ntl Incorporated. Former NTL stockholder now own nearly 75% of the combined company while the remainder 25% is ownd by telewest stockholders.Both companies are recovering from a downturn, which saw NTL emerge from bankruptcy protection in 2003 and Telewest undergo restructuring. It is generally thought that