Site AdminJoined: 07 Apr 2006Posts: 784Location: United Kingdom
According to the Daily Telegraph, Virgin Media has emerged as a surprise frontrunner for Pipex, the £335m broadband provider, which put itself up for sale last week.
Pipex's adviser, UBS, is believed to have asked for first-round bids by Friday for the business.
It hired the investment bank to consider its strategic options after receiving several expressions of interest, one of which is understood to have come from Virgin Media, the former NTL/Telewest.
The other significant approach is thought to be from BT Group.
At its glitzy rebranding last month, Virgin Media announced plans to reach more than 97pc of UK households, rolling out all of its services beyond its cable network, which covers just 55pc of the population.
Coverage is crucial to the group's bid to take on Sky, which offers almost universal television coverage via satellite and is moving aggressively into broadband.
Virgin Media had been seeking a wholesale deal with a telecoms supplier and considering installing its own equipment in BT exchanges, using phone lines to carry television to homes.
However, it is now also examining the possibility of buying another broadband provider to boost its coverage in one swoop. It may discuss a bid for Pipex at a board meeting today.
Carphone Warehouse, Sky, Tiscali and Orange could also bid for Pipex, which has 570,000 broadband customers.
None of Virgin Media, UBS, Pipex or BT would comment.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
