Now Virgin Media faces £7bn private equity bid

[Craig]

A private equity consortium is considering a $15bn (£7.5bn) bid for Virgin Media, the cable firm where Sir Richard Branson is the largest shareholder.

Formerly known as NTL/Telewest, the cable group has been at the centre of a dispute with BSkyB after the satellite television operator scuppered Virgin Media's bid for ITV at the end of last year. BSkyB bought a blocking stake in the commercial television company, thwarting Branson.

Private equity interest in Virgin Media has been revived after the company reported it lost customers in the first quarter of the year and that its performance would deteriorate further after a row with BSkyB over how much Virgin Media should pay it to carry its four basic channels. The disagreement has led to the Sky channels being withdrawn from the cable network - a development that has persuaded some customers to cancel their Virgin Media subscriptions.

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The private equity consortium is being spearheaded by US group Providence Equity Partners, which held talks with the cable group about a $31 a share bid last summer. Now, Providence Equity is considering whether to take advantage of Virgin Media's relatively weak share price of $24 to launch an opportunistic bid. A takeover could net Branson £400m, although analysts believe he would retain a sizeable holding.

Providence Equity Partners is talking to its partners, Blackstone, KKR and Cinven, about the possibility of making an approach in the coming weeks.

The last talks broke down after opposition from major investor Bill Huff. But his influence is waning as he has been selling down his holding, which now stands at 5.7 per cent. Last week, Huff was forced to cut his board representation, reducing potential opposition to a takeover bid. It is not known whether Branson would actively support a buyout from private equity. One observer says: 'Clearly, he would want to see the colour of their money before deciding.' Another big shareholder, Franklin Mutual Advisers, is believed to favour a bid.

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A takeover could net Branson £400m, although analysts believe he would retain a sizeable holding.

:yikes:How the fuck does Branson get all this money? God knows how much debt Virgin Media are in as well. I'm not sure on another take over though, I mean 2 in less than a year? Wow...

Now Virgin Media faces £7bn private equity bid | Business | The Observer

[domcassells]

well if it means lower bills i dont care, but if it means they are going up, i am offski