ClickAJob News

Virgin Media today announced that it is extending a strategic review of the company's options in order to give potential suitors more time to come forward with takeover bids.

The cable TV firm said in a statement that its financial advisers had suggested that the company should extend the process in order for those with an interest in acquiring the group to complete bid proposals "in a more stable debt market environment".

Virgin Media, created last year following a merger between Virgin Mobile and NTL Telewest, announced on July 2nd that it had received a takeover offer, but did not name the source.

The company said then that it would consider the offer as part of a review of its strategic alternatives launched with advisers Goldman Sachs.

"As a consequence of this review and the resulting process, potential strategic and financial counter-parties have continued to confirm a strong ongoing interest in a transaction," Virgin Media said in a statement.

"To enhance shareholder value, Virgin Media's financial advisers have recommended that Virgin Media extend the process until these parties can complete their proposals in a more stable debt market environment," the company added.

Reports have linked several private equity firms to a possible takeover of Virgin Media, which has seen its subscriber base drop following a pricing row with Sky earlier this year that resulted in the rival broadcaster withdrawing some of its key channels from its competitor's cable service.

Private equity group Carlyle is rumoured to be the mystery bidder behind last month's £5.5 billion approach for the firm, while other private equity firms including Kohlberg Kravis Roberts, Permira and Providence Equity Partners are also thought to be interested in buying Virgin Media.

Difficult market conditions have recently made it difficult for private equity firms to bid for companies because rising interest rates have increased the cost of debt.