Virgin Media extends bid period

Virgin Media has received "strong" takeover interest and has given potential bidders more time to put together their proposals.

The London-based cable operator said: "As a consequence of this review and the resulting process, potential strategic and financial counter-parties have continued to confirm a strong ongoing interest in a transaction.

"Virgin Media's financial advisers have recommended that Virgin Media extend the process until these parties can complete their proposals in a more stable debt market environment."

The Nasdaq-listed firm said a month ago that it had received a £5.5 billion takeover offer for the business thought to have come from private equity firm Carlyle, which owns Insight Communications and is one of the largest US cable firms.

Virgin founder Sir Richard Branson is reportedly keen for a sale of the company, which was formed last year by a merger between Virgin Mobile and NTL Telewest. His Virgin Group is the largest shareholder with a 10.5 per cent stake.

There is also likely to be interest from rivals including Providence Equity, which owns a number of US and European TV companies.

Last year a consortium made up of Providence Equity, Blackstone Group, Kohlberg Kravis Roberts and Cinven made a failed approach for NTL.

Virgin Media's shares have come under pressure after a row over prices with rival BSkyB led to Sky's basic channels - and hit shows such as 24 - being withdrawn from the Virgin service at the end of February.

© Independent Television News Limited 2007. All rights reserved.

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