NTL set to increase Virgin Mobile offer

TELECOMS group NTL is understood to be planning to increase its takeover offer for Virgin Mobile.

It is thought NTL is considering raising its bid for the group to 360p a share, and could table the new offer as early as next week, according to a Sunday Times report.

The new offer would be just over 10% more than the 323p a share bid originally tabled.

The initial offer, which valued the group at £817 million (€1.1 billion), was rejected by Virgin Mobile’s independent directors.

Shares in Virgin Mobile closed at 377p on Friday.

NTL’s initial offer was the result of months of secret negotiations between chief executive Simon Duffy and Richard Branson, whose Virgin Group holds a 72% stake in the mobile business.

It is thought NTL wants to have a deal in place before its new chief executive Stephen Burch takes up his post on January 16.