By Tim Richardson for The Register
This article has been reproduced from The Register, with
permission.
On Monday both NTL and Virgin Mobile confirmed they were holding
talks that could lead to the creation of a mega media business
offering punters a four-play service of TV, fixed-line phone,
broadband and mobile under the Virgin brand.
But in a statement Virgin Mobile which is 72 per cent
owned by Sir Richard Branson's Virgin Group turned down the
offer claiming that it "undervalues Virgin Mobile".
The mobile phone company said: "The board of Virgin Mobile has
today unanimously rejected the potential offer, which was announced
by NTL on 5 December 2005.
"Mindful of its duty to maximise value for all shareholders, in
reaching this decision the board has carefully considered the
potential offer and consulted with Virgin Mobile's major
independent shareholders. The Board has concluded that the
potential offer materially undervalues Virgin Mobile."
Despite today's slap in the face analysts are not surprised by
Virgin Mobile's stand and would not be surprised to see a revised
offer to be made for the business.
A spokeswoman for NTL which is in the process of merging
with UK cableco Telewest – declined to comment.
© The Register
2005
