Virgin Mobile Rejects Takeover Bid From NTL

1:44 am on December 8, 2005 | Category: Business

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Virgin Mobile made the final decision yesterday to reject a £835 million ($1.45 billion) takeover bid from British cable giant, NTL.

Virgin’s board unanimously voted to reject the bid, the company said in a statement. NTL has chosen to refrain from commenting the move until executives have a chance to formally review Virgin’s decision.

Unfortunately for NTL, however, there isn’t really much to review. Virgin’s reason for rejecting the bid, was quite simply, that the offered price was too low.

There has been no official word on whether NTL is planning to make a new bit, but most analysts doubt that they could afford to after their $6 billion acquisition of Telewest Global in October.

The media buzz surrounding this offer has, at any rate been good for Virgin’s stock price, with shares up more than 10% so far this week.

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    4 Comments »

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    1. Hello,
      I do not trust virgin on the take-over bid for NTL as it’s will cause some serious damages to the system. as Ntl are suppose to take-over Telewest-Blueyonder to make them much better still.

      Comment by Andrew Webster — December 10, 2005 #

    2. What many of you don’t know is that NTL already own a Virgin Franchise.

      NTL own ans trade as Virgin.net.

      You may not also realise that Virgin Mobile run their entire network off of T-Mobile Equipment.

      Again you have failed to realise that Telewest “own” the network that T-mobile run off.

      By now, I beleive you have realised that NTL are now part of Telewest, Telewest are very good friends with T-mobile, T-mobile are very very good friends of Virgin, Virgin have been very good friends with NTL for a long time and everyone wants a cheap mobile phone.

      The much tauted “Four-play”, not “Foreplay”, service that is the key to the ownership of the entire residential market is now very firmly within their grasp.

      Before anyone tries to disagree with this, these are facts – non are disputable and all are researchable.

      Please research any replies…

      Joe Public

      Comment by Joe public — December 11, 2005 #

    3. [...] The new offer will probably be around £3.60/share, only about 10% higher than the previously rejected bid of £3.23. So far, it is unclear whether Virgin Mobile’s board or independent directors would be open to such an offer. The directors are reportedly hoping for a figure of about £4.00/share, but a compromise hasn’t been altogether ruled out. [...]

      Pingback by NTL Expected to Make Another Offer on Virgin Mobile » Telecommunications Industry News — January 2, 2006 #

    4. [...] Current Virgin shareholders are being given a choice to accept either a cash offer of £3.72/share, a stock offer of 0.23245 NTL shares, or a combination of 0.18596 NTL shares and £0.67 in cash. This is a much better deal for Virgin shareholders than the £3.23/share offer that the company chose to reject in December. [...]

      Pingback by Virgin Mobile Accepts NTL Buyout Offer » Telecommunications Industry News — April 4, 2006 #

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