Buyout firms not planning Virgin Media bid: source
LONDON (Reuters) - A consortium of private equity groups named in a weekend press report has no current plans to make a bid for cable operator Virgin Media (VMED.O), a source familiar with the matter said on Monday.
A report in the Observer newspaper said Blackstone (BX.N), Cinven CINV.UL, Kohlberg Kravis Roberts KKR.UL and Providence Equity were prepared to offer $6 billion to $7.5 billion for the company, despite continuing turmoil in the credit markets.
But a source told Reuters on Monday a bid was not feasible in the current climate and said the consortium, which had been mulling such an offer before the credit crunch, had not worked on the project since June.
"They have not worked on such a bid since May or June last year," the source told Reuters.
Private equity firm Carlyle Group CYL.UL made an initial offer for Virgin Media last year but withdrew it soon afterwards following problems in the credit markets, sources told Reuters at the time.
Virgin Media, which bundles television, broadband, mobile and fixed-line telephony in a series of price packages, operates in Britain but is listed on Nasdaq.
KKR, Blackstone, Cinven and Virgin media all declined to comment.
(Reporting by Kate Holton and Mathieu Robbins; Editing by David Holmes)
