A consortium of four private equity groups is preparing a bid for Virgin Media worth between $6 billion and $7 billion, according to a weekend report.
A report in the
Observer said that a private document titled ‘Project Coaxial’ shows that Blackstone, Cinven, KKR and Providence are prepared to approach Virgin Media.
The consortium is being advised by Merrill Lynch, Morgan Stanley and Perella Weinberg Partners.
Virgin Media put itself up for sale in July last year following an approach from the private equity firm Carlyle (see Private Equity Firm Makes Virgin Media Bid) which valued the company at around £11 billion.
However, the auction was put off by the credit crunch, which made it difficult for potential buyers to borrow from banks to fund a deal.
Sir Richard Branson, who owns a 10.5% shareholding in Virgin Media, could make £600 million to £750 million if a deal goes through.
Last week, Neil Berkett who was Virgin Media’s acting chief executive officer since August 2007, was appointed chief executive officer (see Virgin Media Appoints Chief Executive).
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