Virgin Media has been forced to extend its deadline for receiving formal takeover proposals, blaming volatile debt markets. It says that following a recommendation from its financial advisers it has decided to extend the proposal until parties can complete their proposals in a more stable debt market environment in order to “enhance shareholder value”.
Last month Virgin Media launched a strategic review and hired Goldman Sachs to evaluate potential offers after receiving a $10.8bn (£5.3bn) bid from private equity company Carlyle Group.
In a statement, Virgin Media says: “As a consequence of this review and the resulting process, potential strategic and financial counterparties have continued to confirm a strong ongoing interest in a transaction. There is no assurance that any transaction will occur or, if so, at what price.”
A number of the private equity groups that have registered an interest are struggling to raise the funds required to leverage a $23bn (£11.36bn) bid due to problems raising finance from the unstable debt markets.