Speculation continues this morning over NTL’s interest in mobile phone operator Virgin Mobile, with the cable company expected to make a second takeover offer this week, following its initial rejection at the end of last year.
Reports this morning claim a value of £960 million would be placed on Virgin Mobile under the new deal, marking a substantial increase over the £817 million approach made last year (see
Virgin Mobile Backs Away From NTL Deal).
The new deal would see Virgin chairman Sir Richard Branson relinquish his majority stake of 71% in Virgin Mobile, dipping to a lower shareholding to take around £125 million and a 14% share in the merged company. The trade off would see the business mogul remain the enlarged group’s largest shareholder, however.
A merger between the two firms would also see NTL adopt the Virgin brand, with speculative suggestions for the new name ranging from Virgin Media to Virgin Television. However, the company would offer more than simple cable TV, with the enlarged group the first to offer customers a ‘quadruple-play’ of phone, internet, TV and mobile services.
The tie-up would also enable Virgin Mobile more leverage in the TV arena, with NTL undoubtedly interested in the forthcoming launch of wholesale mobile TV service, BT Movio, for which Virgin Mobile is the first customer.
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