Abstract
NTL proposed a £871 m takeover of Virgin mobile but was rejected, then a second proposition was made at £961 m. On the 3rd of April they announced a total of $1.66 billion for Virgin Mobile. The negotiation will be ready to receive both cash and NTL shares in a deal. Virgin Mobile will have a choice of accepting cash or shares in NTL in exchange for their stake in the mobile company. Virgin mobile shareholder can choose between a cash offer or 0.23245 NTL shares per scheme share* held, a share offer of 372 pence and a share and cash offer by NTL and a cash offer of 0.18596 NTL share held. NTL will use the Virgin Brand to offer internet access, TV and fixed line and mobile telephone. NTL entered into a 30 year exclusive brand license limited for the use of the virgin brand for NTL consumer business.
