Satdude
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Virgin Media to pursue buyer potential
Virgin Media, the UK cable company that is the target of private equity investors, on Thursday appointed a second investment bank in an effort to attract buying interest from US and international cable companies amid concerns that market volatility could make a private equity deal less of a safe bet.
The company, formerly called NTL Telewest but rebranded as Virgin Media after British billionaire Sir Richard Branson took a 10.1 per cent stake, held a board meeting in New York on Thursday to discuss its options, according to people familiar with Virgin Media’s plans.
Last week, Virgin Media’s board appointed Goldman Sachs to review “strategic alternatives” after it received an offer proposal from Carlyle Group, the private equity company, for at least $32 per share, valuing Virgin Media at about $23bn (£11.3bn), including debt.
UBS was hired Thursday to pursue the potential for “strategic buyers”, and bankers have already started a round of phone calls to US cable industry giants Comcast Corp and Time Warner Cable, people familiar with the events said. They are also talking to Liberty Global, which owns cable properties throughout Europe.
None of the companies would comment.
However, people familiar with their strategies indicated none of these would be likely buyers of Virgin Media, which has recently lost market share in UK broadband internet connections to British rival BSkyB, the satellite operator controlled by R. Murdoch’s News Corp. Virgin Media and BSkyB have also clashed over BSkyB’s purchase of a stake in ITV, done to prevent an acquisition by Virgin Media.
Private equity investors are considered to be more likely eventual buyers of Virgin Media, although due diligence and the sales process is expected to take several more months and is in its early stages.
In the meantime, volatility in debt markets has led to some concerns about whether private equity investors will be able to continue to finance their acquisitions at the current low interest rates.
A consortium led by Providence Equity Partners, which was rebuffed by the former NTL last year, is still considering its options.
Regards Satdude.
Virgin Media, the UK cable company that is the target of private equity investors, on Thursday appointed a second investment bank in an effort to attract buying interest from US and international cable companies amid concerns that market volatility could make a private equity deal less of a safe bet.
The company, formerly called NTL Telewest but rebranded as Virgin Media after British billionaire Sir Richard Branson took a 10.1 per cent stake, held a board meeting in New York on Thursday to discuss its options, according to people familiar with Virgin Media’s plans.
Last week, Virgin Media’s board appointed Goldman Sachs to review “strategic alternatives” after it received an offer proposal from Carlyle Group, the private equity company, for at least $32 per share, valuing Virgin Media at about $23bn (£11.3bn), including debt.
UBS was hired Thursday to pursue the potential for “strategic buyers”, and bankers have already started a round of phone calls to US cable industry giants Comcast Corp and Time Warner Cable, people familiar with the events said. They are also talking to Liberty Global, which owns cable properties throughout Europe.
None of the companies would comment.
However, people familiar with their strategies indicated none of these would be likely buyers of Virgin Media, which has recently lost market share in UK broadband internet connections to British rival BSkyB, the satellite operator controlled by R. Murdoch’s News Corp. Virgin Media and BSkyB have also clashed over BSkyB’s purchase of a stake in ITV, done to prevent an acquisition by Virgin Media.
Private equity investors are considered to be more likely eventual buyers of Virgin Media, although due diligence and the sales process is expected to take several more months and is in its early stages.
In the meantime, volatility in debt markets has led to some concerns about whether private equity investors will be able to continue to finance their acquisitions at the current low interest rates.
A consortium led by Providence Equity Partners, which was rebuffed by the former NTL last year, is still considering its options.
Regards Satdude.