Investors 'holding out for higher offer for Virgin mobile'

Directors of Virgin Mobile have been told by institutional investors not to accept any takeover bid from cable giant NTL that is less than 400p a share, it was reported today.

Institutions are understood to have made their feelings known after Sir Richard Branson – whose Virgin Group owns a 72% stake in the mobile phone firm - said last month that a deal could be sealed if NTL raises its price modestly from £817m (€1.19bn).