Virgin Media gives suitors more time

Aug 8 2007

VIRGIN Media has given potential buyers more time to put together their plans after receiving “strong” interest in a possible deal for the firm.

The cable company, which employs around 2,000 people in Merseyside, extended the process so the parties can complete their proposals in a “more stable debt-market environment”.

A month ago Virgin said it had received a takeover offer for the business, a £5.5bn move thought to have come from private equity firm Carlyle.

Virgin considered the proposal as part of a review of its strategic alternatives, including the possible sale of the company.

It said yesterday: “As a consequence of this review and the resulting process, potential strategic and financial counter-parties have continued to confirm a strong ongoing interest in a transaction.

“Virgin Media’s financial advisers have recommended that Virgin Media extend the process until these parties can complete their proposals in a more stable debt-market environment.”

Virgin founder Sir Richard Branson is reportedly keen for a sale of the New York-listed company, which was formed last year by a merger between Virgin Mobile and NTL Telewest.

Virgin Media has well in excess of 100,000 television, telephone and broadband subscribers in Merseyside.

Sir Richard’s Virgin Group is the largest shareholder in the business, with a 10.5% stake.

Carlyle has substantial experience in the cable market and owns Insight Communications, which is among the 10 largest cable firms in the United States. There is also likely to be interest from rivals including Providence Equity, which owns a number of US and European TV companies.