Reports this morning suggest that negotiations yesterday are likely to result in NTL offering Virgin Mobile shareholders between 365p and 370p a share in order to secure the backing of the board, either today or early next week. It does not specify what Branson would get for his majority stake.
The Branson and NTL-led deal has been held up by the minority investors, who together own 28% of Virgin Mobile to Branson's 72%.
NTL's initial offer for Virgin Mobile in December was 323p a share for Branson and the minority shareholders, of whom the largest are investment funds Fidelity and Morley. This would have valued Virgin Mobile at £817m.
However, the minority shareholders have pressured for an increased offer, and Virgin Mobile's share price has risen to 368p, not far off its 52-week high of 383.25p.
If NTL offers 370p, the bid would cost it £34m more in cash terms than its first offer, according to The Independent.
The deal is seen as a threat to BSkyB because it would create a cable TV, broadband, fixed and mobile phone service company using the valuable Virgin brand and with a base of 10m customers.
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