Virgin attracting interest
Media unit gets eye from private equity groups
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A consortium of Blackstone, Cinven, KKR and Providence Equity are prepared to offer up to $7.5 billion for the company, according to a report in U.K. newspaper the Observer.
The paper claims it has seen a private document suggesting the consortium is poised to take advantage of Virgin Media's soft stock price, which since the summer has fallen from $29 to below $14.
Advisers to the private equity consortium state in the document that they "believe the Virgin Media board may consider a proposal, depending on premium paid. "
Significantly, the price the group is apparently prepared to fork out is a good deal less than the $11 billion Virgin valued itself at last year.
At the time, an approach from private equity combo Carlyle persuaded Virgin to consider bidders, but this was derailed by the global credit crunch.
Analysts are surprised that a new bid has emerged and some doubt that enough coin could be borrowed to fund a bid.
