Virgin Media confirms buyout offer

NEW YORK (CNNMoney.com) -- Virgin Media (Charts, Fortune 500) said Monday it has received a takeover offer, but the British cable company, whose largest investor is Richard Branson, declined to name the bidder and said it isn't negotiating about a possible buyout.

Earlier news reports had said Carlyle Group was in talks with Virgin Media over a buyout offer and that Branson was open to considering a deal.

Sir Richard Branson

The New York Times, citing a person familiar with the negotiations, said that the talks are still early and may not lead to a bid. The report noted that as their warchests have grown, U.S. buyout firms like Carlyle have looked more aggressively to do deals overseas.

The Times of London, quoting unnamed financial sources, said over the weekend that Branson was open to a buyout of the company, paving the way for a potential deal at $10 billion (£4.9 billion) or more.

The New York Times said in its report that a deal could be worth nearly $20 billion if debt is included. That would rank it among the biggest buyout deals ever in Britain.

Last month, Alliance Boots, the pharmacy chain, agreed to a $21.8 billion offer from its deputy chairman and Kohlberg Kravis Roberts after a bidding war, the newspaper noted.

Talk of a deal for Virgin Media comes on the heels of a $33 billion deal for Canada's largest telephone company. On Saturday, Bell Canada said it agreed to be taken private by two American private equity firms - Providence Equity Partners and Madison Dearborn Partners - and the Ontario Teachers' Pension Plan. If approved, the deal would be the biggest buyout on record.

Virgin Media in May reported its seventh consecutive quarterly loss after subscribers defected to rival BSkyB, the New York Times said. The loss widened to $242 million.

Branson, through his company Virgin Group, holds a 10.5 percent stake in the $8 billion Virgin Media, the London Times said in its report.