Cable TV network operator NTL has approached Virgin Mobile regarding a possible takeover of the mobile phone operator, it said today.
The proposed deal would see Virgin Mobile shareholders offered 0.09298 shares of NTL common stock per Virgin Mobile share they hold, or a cash payment of £3.23, NTL said in a statement. Virgin Mobile shares closed trading in London on Friday at 313p.
Virgin Group, which is the majority shareholder of the wireless carrier with a 72 percent stake, has said that should the transaction proceed it intends to exchange most of its shares for those of NTL, with possibly a small portion taken in cash. Virgin Mobile is a mobile virtual network operator and T-Mobile, on which its service operates, has indicated support for the proposed takeover, NTL added.
The two companies are already working together in the broadband internet field. NTL has an exclusive licence for use of the Virgin brand name for broadband services and it is in talks to extend that to include television and fixed and mobile telephony, it said.