UK cable company NTL has made an offer to buy Virgin Mobile for $1.4 billion. Information surrounding the offer leaked over the weekend and was officially confirmed this morning by NTL. The company wants to provide TV and wireless service under the Virgin brand name.
However, some pundits believe Virgin Mobile would be better off waiting for a higher offer--the $1.4 billion figure is only a 3.9% premium on Virgin Mobile's closing price friday.
An industry source said the Virgin Mobile board might hold out for a better price, however. NTL's offer represents a 3.9 percent premium to Virgin Mobile's closing price on Friday... "In considering its response, the board of Virgin Mobile will be mindful of its duty to maximise value for all shareholders," Virgin Mobile said in a statement.
The transaction would not affect Virgin Mobile USA, but will surely encourage other MVNOs.