By Tim Richardson for The Register
This article has been reproduced from The Register, with permission.
On Monday both NTL and Virgin Mobile confirmed they were holding talks that could lead to the creation of a mega media business offering punters a four-play service of TV, fixed-line phone, broadband and mobile under the Virgin brand.
But in a statement Virgin Mobile which is 72 per cent owned by Sir Richard Branson's Virgin Group turned down the offer claiming that it "undervalues Virgin Mobile".
The mobile phone company said: "The board of Virgin Mobile has today unanimously rejected the potential offer, which was announced by NTL on 5 December 2005.
"Mindful of its duty to maximise value for all shareholders, in reaching this decision the board has carefully considered the potential offer and consulted with Virgin Mobile's major independent shareholders. The Board has concluded that the potential offer materially undervalues Virgin Mobile."
Despite today's slap in the face analysts are not surprised by Virgin Mobile's stand and would not be surprised to see a revised offer to be made for the business.
A spokeswoman for NTL which is in the process of merging with UK cableco Telewest – declined to comment.
© The Register 2005
