NTL Telewest Business, the corporate networking and communications arm of Virgin Media, could be sold off for as much as 600 million.
A report in The Times newspaper has identified the business communications subsidiary as the most likely candidate for a sell-off as Virgin Media looks to offload assets and generate cash to invest in its core residential cable television, telephony and broadband services. The residential business, the rump of its operations, is suffering from significant competition and price pressure from BT, Sky and numerous local loop unbundling rivals offering broadband at cost price and for free.
Virgin Media's financial advisor Goldman Sachs was reported to have already drawn up one proposal to merge the division with Scottish telco Thus. This plan has not been used to date, due in part to the pending 329 million Cable & Wireless takeover bid for Thus that was launched in May.
IT PRO contacted NTL Telewest Business regarding the report, however the company declined to comment.
Virgin Media reported an operating loss of 4.6 million in its first quarter this year and is due to release its second quarter financial results this Thursday.
