ntl poised to make increased Virgin Mobile bid

3 Apr 2006

Newly merged UK cable operator ntl Incorporated could make its long awaited formal takeover bid for MVNO Virgin Mobile this week, according to local news sources. It is expected that the Virgin Mobile board will recommend an increased takeover bid from ntl worth around GBP961 million (USD1.659 billion). ntl first made an offer for Virgin Mobile, which is 71.3% owned by Sir Richard Branson’s privately held Virgin Group, in December 2005, but minority investors rejected the GBP810 million bid. ntl will now reportedly return with an offer of 372p per share in cash for the cellco’s minority shareholders, whilst Sir Richard is expected to take a lesser 349p per share in cash and ntl shares to push the deal through. If successful, ntl plans to use the Virgin brand name across its operations, to establish a heavyweight internet, television and telecoms services company that could take on the dominance of BT and satellite broadcaster BSkyB.

United Kingdom, Virgin Media, Virgin Mobile UK