US cable giant TCI, which owns 50 per cent of Princes Holdings, is expected to confirm shortly that it is purchasing Cable Management, the cable television company. Following the purchase, the Cable Management network will be integrated with Princes' existing operation, creating a second force in the Irish market following NTL's acquisition of Cablelink.

NTL has 360,000 customers, mainly in Dublin, Galway and Waterford, while the Princes/Cable Management operation will have some 220,000 subscribers. Princes Holding's existing customers are concentrated in Cork and Limerick, while the Cable Management customers are mainly in north Co Dublin and in other towns around the greater Dublin area and beyond into north Kildare, Wicklow and as far west as Mullingar in Co Westmeath.

Both of the big operators will now invest heavily so they can offer a range of multi-media and telephone facilities.

Further details of the acquisition may be announced as early as today. Cable Management's main shareholders are two British equity funds - operated by Legal & General Assurance and Barings - who together own 75 per cent. But among the beneficiaries of the acquisition - probably valued in the £80 million (#102 million) to £90 million (#114 million) region - will be Cable Management's managing director, Mr Ray Doyle and its finance director, Mr Steve Keaveney, who each own around 10 per cent.

The other shareholder in Princes Holdings is Independent News &Media, which is not contributing financially to the acquisition but will hope to benefit from Princes managing a larger entity.