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| Equity firm targets Virgin Media | Equity firm targets Virgin Media |
| (about 5 hours later) | |
| Virgin Media, the UK's leading cable television company, is set to be taken private for more than £5.5bn. | Virgin Media, the UK's leading cable television company, is set to be taken private for more than £5.5bn. |
| Carlyle, one of the world's leading private equity groups, has made a preliminary offer of between $33 (£16.50) to $35 per share for Virgin. | Carlyle, one of the world's leading private equity groups, has made a preliminary offer of between $33 (£16.50) to $35 per share for Virgin. |
| Shares in Virgin, which is listed on the US Nasdaq rather than in London, closed on Friday at $24.37 per share. | Shares in Virgin, which is listed on the US Nasdaq rather than in London, closed on Friday at $24.37 per share. |
| Sir Richard Branson is the largest investor in Virgin Media, which has 9m customers and a £4bn annual turnover. | Sir Richard Branson is the largest investor in Virgin Media, which has 9m customers and a £4bn annual turnover. |
| The offer would value Virgin at approximately £5.6bn. | The offer would value Virgin at approximately £5.6bn. |
| The total value of the takeover deal, including Virgin's debt of almost £6bn, would be about £11.5bn. | The total value of the takeover deal, including Virgin's debt of almost £6bn, would be about £11.5bn. |
| If it goes through, it would be the second biggest takeover of a British business by private equity, after Boots. | If it goes through, it would be the second biggest takeover of a British business by private equity, after Boots. |
| Auction plans | Auction plans |
| However, it is too early to say whether Carlyle will end up as the owner of Virgin Media, since other private equity firms are interested in making their own offers for it. | However, it is too early to say whether Carlyle will end up as the owner of Virgin Media, since other private equity firms are interested in making their own offers for it. |
| Virgin's board has asked its investment bankers, Goldman Sachs, to conduct an auction of the business. | Virgin's board has asked its investment bankers, Goldman Sachs, to conduct an auction of the business. |
| It is believed Virgin's managers feel the business would be in a better position to grow as a private company. | It is believed Virgin's managers feel the business would be in a better position to grow as a private company. |
| The tidal wave of private-equity takeovers shows no sign of abating Robert Peston, BBC business editor Read Robert's blog in full | |
| They would be freed from the onerous requirement to make quarterly announcements of earnings and could be less fettered in the way they invest in the business. | They would be freed from the onerous requirement to make quarterly announcements of earnings and could be less fettered in the way they invest in the business. |
| Providence, another private equity group, is believed to have put together a consortium of private equity players to make an offer for Virgin. | Providence, another private equity group, is believed to have put together a consortium of private equity players to make an offer for Virgin. |
| A banker said there was likely to be interest in Virgin from "several other private equity groups". | A banker said there was likely to be interest in Virgin from "several other private equity groups". |
| Sources close to Sir Richard Branson say he would like to remain a shareholder in Virgin as and when it has been taken private. | Sources close to Sir Richard Branson say he would like to remain a shareholder in Virgin as and when it has been taken private. |
| It is believed that most of the other leading Virgin shareholders would be keen to sell at somewhere around the price offered by Carlyle, although the Virgin board believes the business could be worth around $40 a share. | It is believed that most of the other leading Virgin shareholders would be keen to sell at somewhere around the price offered by Carlyle, although the Virgin board believes the business could be worth around $40 a share. |
| Legal dispute | Legal dispute |
| Following pressure from leading shareholders, in May Virgin asked Goldman to carry out detailed research on what the business is worth - known as a valuation exercise. | Following pressure from leading shareholders, in May Virgin asked Goldman to carry out detailed research on what the business is worth - known as a valuation exercise. |
| Virgin is in a bitter legal dispute with British Sky Broadcasting following the failure of the two businesses to reach an agreement on terms for Sky to be carried on Virgin's cable channels. | Virgin is in a bitter legal dispute with British Sky Broadcasting following the failure of the two businesses to reach an agreement on terms for Sky to be carried on Virgin's cable channels. |
| In its last results, Virgin said it had three million users of its television services, 3.4 million broadband customers, 4.5 million subscribers to its mobile phone service and 4.1 million fixed-line telephone customers. | In its last results, Virgin said it had three million users of its television services, 3.4 million broadband customers, 4.5 million subscribers to its mobile phone service and 4.1 million fixed-line telephone customers. |
| It is believed that Goldman will take around six weeks to whittle down the actual and potential bidders for Virgin to a definitive short list. | It is believed that Goldman will take around six weeks to whittle down the actual and potential bidders for Virgin to a definitive short list. |