Virgin Media drags feet on deal

LONDON -- Virgin, which is listed on the U.S.-based Nasdaq Stock Market although it operates in Britain, said a month ago it had received an offer from an unidentified party.

People familiar with the talks later confirmed that a $11.4 billion approach came from the Carlyle Group, a private-equity firm. Since then, other private-equity firms have been suggested as suitors.

Virgin said Tuesday that "potential strategic and financial counterparties have … a strong, ongoing interest in a transaction."

However, it added that its financial advisers recommend it "extend the process until these parties can complete their proposals in a more stable debt market." It did not detail a timeline for the review.

Debt markets have been undermined by fears a credit squeeze will end an era of cheap funding for corporate takeovers.

Virgin, which licenses its name from its largest shareholder, entrepreneur Richard Branson, reported its seventh-consecutive quarterly loss in May after subscribers defected to rival satellite service BSkyB.

Virgin, the byproduct of a number of mergers, including the former cable operators NTL and Telewest and the mobile operator Virgin Mobile, was formed to create Britain's first "quadruple play" service, offering mobile phone, fixed-line phone, Internet broadband and TV services.

It has struggled, however, to provide solid services and recently invested substantially in revamping its customer service after scores of complaints.

Branson has a 10.5% stake in the company.