December 5, 2005

According to published reports, U.K.-based cable company NTL Inc. has bid $1.4 billion for mobile virtual network operator Virgin Mobile.

Virgin Mobile confirmed in a statement today that it had received an offer from NTL "that may or may not lead to a formal offer being made for the company."

The bid appears to cover only Virgin Mobile in the United Kingdom and not Virgin Mobile USA L.L.C.

The deal would make NTL/Virgin the first company in the United Kingdom with the ability to bundle voice, data, video and wireless services.

NTL acquired a smaller rival, Telewest, in October for about $6 billion.

If NTL's deals go through, the combined NTL/Telewest/Virgin Mobile company would have 3.3 million cable customers, 2.5 million broadband customers, 4.3 million voice customers and 5 million wireless customers.

The merged company is expected to take the Virgin name.

Source: RCR