Virgin Mobile Close To Accepting NTL Merger

Reports this morning suggest that a merger deal between cable giant NTL and Virgin Mobile may soon be completed, with the mobile firm’s board believed to have provisionally accepted a revised acquisition bid from the cable operator.

According to a Press Association report, a revised offer of 372p per share has been tabled by NTL, increasing on the firm’s initial 323p per share offer, which was rejected last year as Virgin claimed it under-valued the company at £817 million (see Virgin Mobile Backs Away From NTL Deal).

Since its rejection of NTL’s first offer, speculation has raged that Virgin is hoping for either a higher offer from NTL, or for a second bidder to emerge. However, the company’s directors, including majority shareholder Richard Branson, are now reported to have settled on NTL’s revised offer.

A merger between the two firms would enable NTL to offer Britain’s first ‘quadruple play’ of services, rebranding as Virgin Media to offer fixed line phone services, mobile services, subscription TV and internet connections.

The companies have so far remained tight lipped regarding the revised deal and on-going negotiations, although Virgin’s share price was boosted by the speculation yesterday, closing up by 3p at 371p.

NTL: 01256 752000 www.ntl.com Virgin Mobile: www.virginmobile.com