Carlyle lines up bid for Virgin Media

Cable operator Virgin Media has appointed Goldman Sachs to seek a possible buyer after it received approaches from various private…

Cable operator Virgin Media has appointed Goldman Sachs to seek a possible buyer after it received approaches from various private equity firms.

Carlyle Group has offered to buy the company whose leading shareholder is entrepreneur Richard Branson, sources said.

Virgin's market capitalisation is $8 billion, meaning any offer would likely exceed $10 billion based on the typical premiums paid in takeovers. The company, whose shares are traded in New York, also has another 6.1 billion pounds of long-term debt.

Its shares closed at $24.37 on Friday on the Nasdaq.

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The search for a Virgin Media buyer by Goldman Sachs was characterised by the sources as in the early stages.

Virgin Media - which sells cable television, telephone, high-speed Internet and mobile phone services - was formed by last year's union of Britain's two cable operators NTL and Telewest. The new company then acquired Virgin Mobile from Branson and rebranded the group as Virgin Media.