Virgin rejects NTL bid

Virgin Mobile today rejected U.K. cable giant NTL’s initial $1.4 billion bid for its European business, but Virgin’s majority shareholder, Richard Branson, told European media that the companies were only $43 million shy of a deal--a statement that Virgin Mobile tried to deflect today.

Speaking on British radio, Branson said that he expects NTL and Virgin to easily come to terms over such a miniscule difference in price. But Virgin issued a statement today saying it had not considered any other purchase price or made a counter offer to its would-be purchaser.

“The independent board confirms that, in reaching its decision, it only considered the 323p ($5.66) per share potential offer price announced by NTL (on Monday). It did not consider any other price, nor did it solicit any other price,” Virgin said.

Virgin revealed the initial offer on Monday after months of speculation about a possible deal. Virgin Mobile U.K. like its U.S. counterpart is a mobile virtual network operator (MVNO), which sells its own unique voice and data services over a wholesale carrier’s network. Unlike in the U.S., however, where Virgin Mobile is 50% owned its network provider Sprint, Virgin Mobile U.K. is 72% owned by Branson’s Virgin Group, not a joint venture with its network operator T-Mobile U.K.

If the deal goes through the combined company would become an all-in-one carrier offering voice, cable TV, Internet and mobile services in the U.K.--a trend that already has strong pull in the U.S. Telecom incumbent BT is planning to offer its own MVNO soon, adding wireless to its wireline voice and data bundles, and satellite TV provider BSkyB recently acquired its own terrestrial broadband ISP.