'Carlyle eyes Virgin Media'

Virgin Media could reportedly be the subject of an $8 billion (£4bn) approach from private equity firm Carlyle.

Last year, Virgin Media completed a merger with NTL Telewest. The rumoured bid is expected to trigger an auction with bankers, including Goldman Sachs.

Almost a year ago, a consortium comprising of US buy-out group Providence Equity, Blackstone Group, KKR and Cinven made a failed approach for NTL.

Providence is also said to be interested once again and City sources expect details about Virgin's financial situation to be sent to prospective buyers within weeks.

Sir Richard Branson is the largest shareholder in Virgin Group with a 10.5 per cent stake and any new owner would have to buy him out or work in partnership.

New York-listed Virgin shares have come under pressure after a row over prices led to Sky's basic channels being withdrawn from the service at the end of February.

Virgin Media has begun High Court proceedings against its rival in a bid to resolve the dispute and said it will seek compensation for any financial losses caused as a result of the row.

Take-up of cable in Britain hit its highest level in almost five years in March, according to communications watchdog Ofcom.

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