Japanese Cable Merger

Japan’s two biggest cable TV operators announced plans to merge, a move that would ally U.S. giants AT&T; Corp. and Microsoft Corp. in the country’s fledgling cable Internet business. Jupiter Telecommunications Co., 50% of which is owned by AT&T; unit Liberty Media, said it will merge with Titus Communications Corp., which is 60% controlled by Microsoft. Analysts said the tie-up would herald a shake-up in Japan’s promising but underdeveloped market for high-speed Internet access by prompting more consolidation, which could pose a threat to dominant telecom carrier Nippon Telegraph & Telephone Corp. AT&T; rose 69 cents to close at $33.50 on the New York Stock Exchange, and Microsoft slipped 69 cents to close at $78.81 on Nasdaq.