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Updated: Virgin Media Buyout

# Jul 2, 06:27 PM by Paul M

According to reports in Timesonline, Reuters and other sources – Private equity group Carlyle is heading a group looking to launch an $8 billion bid to buy Virgin Media.

The interest has prompted Virgin to instruct banks to work alongside its traditional adviser, Goldman Sachs. Discussions about a potential sale are said to be at a very early stage.

A private equity consortium including Providence Equity Partners, Blackstone, Kohlberg Kravis Roberts and Cinven made a £10 billion approach to the cable group last summer. That approach, thought to have been pitched at about $30 dollars a share, failed.

Yesterday Virgin Media’s Nasdaq-listed shares were trading at just $24.

Sir Richard Branson, who is the largest investor in Virgin Media, with 10.5 per cent, is thought to be unhappy about Virgin’s performance.

Virgin media have so far declined to comment.

Forum : Discussion

Source : TimesOnLine

Update: Virgin have released the following statement today;

July 2, 2007: Virgin Media Inc. (NASDAQ:VMED) announced today that it has received a proposal to acquire 100% of the common stock of the Company. The Company has not engaged in negotiations with the offeror. The proposal is based on public information and is subject to various conditions, including a due diligence examination and a period of exclusivity. The proposal also states that it will be withdrawn if its terms are publicly disclosed. Prior to the receipt of the proposal, the Company’s Board of Directors had initiated a review with Goldman Sachs of strategic alternatives, including a process for a possible sale of the Company. The proposal will be considered as part of the review. However, there is no assurance that any transaction will occur or, if so, at what price. The Company does not intend to comment further on the process unless and until a definitive agreement is executed or the process is abandoned.
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