Virgin is at the front of the queue for a Pipex takeover, according to reports.

The telecoms and broadband provider hired investment bank UBS to handle the negotiations, with first round bids being called for by Friday.

The news that Virgin was the frontrunner was first reported in the Telegraph today, without any sources being cited.

Other companies thought to have expressed interest include telecommunication giant BT Group, broadcaster BSkyB, retailer Carphone Warehouse as well as a number of mobile operators including Orange.

At its high profile rebranding in February, in which it merged and incorporated NTL and Telewest, Virgin Media announced that it intended to reach 97 per cent of UK households. Currently its cable network covers just 55 per cent of the population.

Pipex Communications, which currently has 570,000 broadband customers, is thought to have a market capital of £335 million.
Sky, which offers its television coverage via satellite, is in the process of moving into broadband.

© Adfero Ltd

Categories: BT, Pipex, Virgin Media

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