The recently cancelled sale of Telia-Telenor's cable businesses is back on the agenda, according to one telecoms industry investment banker close to Telia, the Swedish national telecoms carrier.

Telia's management has independently decided to proceed with the disposal, having cancelled it last month when its merger with Telenor fell through, according to the source. Telia and Telenor had been forced to sell their cable businesses, which were expected to raise $4bn (e3.9bn), as part of the conditions of European Union regulatory approval for the merger. Rothschilds, the investment bank mandated to handle the sale, had informed bidders last month that the deal was called off. Telia's cable television network, which is Sweden's largest provider of this service with around 1.3 million homes connected, had made up the bulk of the combined group's cable businesses. Telia's sale will be the third large European cable business auction to have been held in recent months. Swisscom's Cablecom was recently sold to NTL while portions of Deutsche Telekom's cable business is being carved up by a number of different trade and financial buyers. While some observers feel the convergence of so many sales could lower price expectations, investment bankers anticipate strong demand because buyers recognise that this embarrassment of riches as a one-off opportunity. The businesses are expected to attract the same companies that are bidding for CableCom and Deutsche Telecom cable, including United Pan-Europe Communications, NTL and France Telecom. As many as 15 financial buyers are expected to be interested, including Callahan Associates, KKR, Hicks Muse Tate & Furst, Klesch & Co. and Blackstone.