A US private equity group is believed to be mulling over a £7.5 billion takeover approach for Hampshire-based cable company Virgin Media, according to reports today.
Providence Equity Partners is said to be leading a consortium that is considering making a bid for the group as the broadcasting giant struggles amid a high profile dispute with rival BSkyB.
Speculation over a possible takeover move from Providence comes less than a year after the American private equity group was first mooted to be in talks to buy Virgin Media, then known as NTL until its rebrand earlier this year.
It is thought that Providence is keen to revive takeover efforts in a bid to take advantage of Virgin Media's current troubles.
Virgin Media, which has used actress Uma Thurman , below, to front its advertising campaign, declined to comment on the takeover speculation.
The cable group, which has its headquarters in Hook, reported a fall in customer numbers in its first quarter results and warned of more to come as a result of a long running row with Sky over contract renewal terms for Sky basic channels, which saw the withdrawal of hit shows such as Lost and 24 from the Virgin Media network at the end of February.
It has since launched High Court legal action against Sky in an attempt to resolve the dispute and claim damages in lost business.
It is reported that Providence is talking to fellow private equity groups Kohlberg Kravis Roberts, Blackstone and Cinven about making an approach within weeks.
The bid rumour follows the latest instalment in the Virgin Media/Sky saga late last week, which saw Sky issue a statement saying Virgin Media had rejected its most recent attempts to find a solution - a claim denied by the cable firm.
Relations between the two groups have soured since Sky scuppered Virgin Media's plans for a £5 billion takeover of ITV last November by buying a 17.9 per cent stake in the commercial broadcaster.
The controversial move by Sky could now be scrutinised by the Competition Commission after an Office of Fair Trading investigation found the holding threatened ITV's independence.
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