Virgin Rejects NTL’s Buyout Offer

The valuation games start: Virgin Mobile has rebuffed $1.4 billion takeover bid from the UK cable group NTL. The board decided unanimously to reject the 323p a share offer because it “materially undervalued” the company.

Richard Branson owns about 70 percent of VM, and has already voiced support for the deal, but has also said that he would support the decision of the board.

When the bid was made public earlier this week, the analysts welcomed the tie-up, which would create the first “quad play” communications group — offering consumers mobile, fixed-line, broadband and TV services on one bill.

More details in this Bloomberg story

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