Virgin Mobile bosses set for NTL roles
Virgin Mobile management today appeared to have secured their futures within a newly-merged business owned by cable operator NTL.
The Financial Times said NTL planned to allow Virgin to operate as a separate entity in the enlarged group, while drawing on the telecoms company’s strong reputation for good service.
The £900m (€1.3bn) takeover by NTL is likely to be announced later this week, with Virgin Mobile chief executive Tom Alexander understood to have agreed to stay on, the report said.
Minority shareholders of Virgin Mobile will be offered three takeover alternatives from NTL, including 372p a share in cash.
More than 71% of the company is owned by Richard Branson’s Virgin Group, which is expected to take a lesser figure of 349p in cash, plus a stake in NTL.
While both sides are working towards a deal at the end of this week, the FT said the timetable could slip because of the added complication of NTL’s merger with fellow cable operator Telewest.
NTL wants to create a communications giant offering a range of services to about nine million customers under the Virgin brand.
A tie-up would create the UK’s first “quadruple play” provider, offering mobile phones, fixed-line phones, internet broadband and television.
