A MULTI billion pound auction is underway for Virgin Media, one of Hampshire's biggest employers, after bosses put up for sale signs at the cable giant.

US private equity giant firm Carlyle Group has made a 5.5 billion offer for the troubled TV, internet and telephone supplier.

Together with Virgin's 6 billion of debt, the deal would be worth around 11.5 billion, making it the second biggest UK private equity deal after the 11.1 billion recently handed over for high street chemist Boots.

But Virgin has appointed bankers to sound out any rival interest and with a number of other bidders expected to emerge, the price could climb still higher.

For the hundreds of Hampshire staff at the Hook based firm, it's just the latest in a series of unsettling revelations. They have already had to cope with significant job losses as a result of a merger with cable rival Telewest and another merger with Virgin's mobile phone division.

Customers too have had to endure a cut to their service as a result of a row with rival Sky TV that saw hit shows such as The Simpsons, Lost and 24 suddenly disappear from their screens.

The public falling out came at the worse possible time for the business, which was trying to banish NTL's poor reputation for customer service by relaunching itself under the Virgin banner.

Virgin Media has started High Court proceedings against its rival in a bid to resolve the dispute and said it will seek compensation for any financial losses caused as a result of the row.

Today Virgin is a sizeable if fragile business. It has 9 million customers, including 3 million TV subscribers, less than half the number on Sky's books, generating a 4 billion turnover. Its overall customer base also fell in the first three months of the year, despite a major 25m marketing push featuring Hollywood actress Uma Thurman. However, recent figures from industry regulator Ofcom show take-up of cable in Britain, a Virgin monopoly following its Telewest merger, has hit its highest level for almost five years.

Any buyer would have to negotiate with Virgin Media's biggest shareholder Richard Branson, who is thought to be supportive of its sale, while keen to keep a stake in the business.

If the deal goes ahead, Virgin will become just the latest major regional employer to be bought up by private equity, following the likes of the AA and Southampton docks owner ABP.