Virgin Media eyes up Pipex

21 Mar 2007

Virgin Media has emerged as a surprise frontrunner for Pipex, the British broadband provider which put itself up for sale last week. Pipex’s adviser, UBS, is believed to have asked for first-round bids by Friday. Pipex hired the investment bank to consider its strategic options after receiving several expressions of interest, one of which is understood to have come from Virgin Media, the former NTL/Telewest. The other significant approach is thought to be from BT Group. Carphone Warehouse, Sky, Tiscali and Orange could also bid for Pipex, which has 570,000 broadband customers.

At its glitzy rebranding last month, Virgin Media announced plans to reach more than 97% of UK households, by rolling out services in areas outside of its cable network (which covers just 55%) via local loop unbundling.

United Kingdom, Pipex (part of Tiscali UK), Virgin Media