New York Times: Carlyle Group in talks to acquire Virgin Media

By Dana Gabriel
Raw Story
Jul. 03, 2007

Washington-based equity firm The Carlyle Group is pondering acquisition of UK cable provider Virgin Media, today's New York Times reports. Excerpts:

The Carlyle Group is in discussions with Virgin Media, the British cable company whose largest investor is Richard Branson, over a potential bid worth around $20 billion, a person familiar with the negotiations said today.

The talks are still early and may not lead to a bid, this person noted.

As the coffers of American buyout firms have swelled over recent years, the firms have become more aggressive in seeking out targets beyond the United States. On Saturday, two American private equity firms partnered with the Ontario Teachers’ Pension Plan to win Bell Canada, that country’s largest telephone company, for 51.7 billion Canadian dollars ($48.8 billion), the largest leveraged buyout ever.

The offer for Virgin Media, said to be worth about $19.6 billion including debt, could be among the largest ever in Britain. Last month, Alliance Boots, the pharmacy chain, agreed to an £11 billion ($21.8 billion) offer from its deputy chairman and Kohlberg Kravis after a bidding war.

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