GBP961m offer from NTL could seal Virgin deal Telecoms firms settle numbers for long-awaited takeover

SIR Richard Branson was last night expecting to add to hisfortune after Virgin Mobile, in which he has a majority holding,received an improved GBP961m takeover proposal from cable companyNTL.

The improved 372p-pershare price was conditionally approved byVirgin Mobile's board after a breakthrough in weeks of negotiations,according to sources.

The mobile company's board planned to meet later last night todiscuss opening its books to NTL .

The proposal values Branson's 72-per cent stake at about GBP692min theory, but the exact terms of the deal are not yet known.

The company's board and its minority shareholders had argued thatthe minorities should receive more than Branson.

Sources close to the process described it as a three-way deal,with Branson agreeing to receive less than the minority holders.

Virgin Mobile had previously rejected an offer of 323p per sharefrom NTL late last year.

By holding out for a better offer, the mobile company's boardlooks like it has squeezed an additional 49p per share, or GBP126m,out of NTL.

Directors of Virgin Mobile were thought to have been told byinstitutional investors not to accept any bid less than 400p fromNTL .

However, Branson previously implied that a bid of 360p could beenough to secure NTL the board's recommendation.

The tie-up would allow NTL to offer a mobile telephone servicealongside its own cable TV, internet and fixed-line phone offerings,all under the Virgin brand.

Sources had previously suggested that talks between NTL andVirgin Mobile had stalled, with NTL moving towards a licensing dealwith Branson's Virgin Group if an agreement could not be reached.

The deal to acquire Virgin Mobile comes as NTL is closing itsacquisition of smaller rival Telewest, which it snapped up in adollars-6bn deal last October. NTL and Virgin Mobile declined tocomment.

Shares in Virgin Mobile rose as high as 375p each in early trade,but slipped back by the end of the session to close up 3p at 371p inLondon last night. NTL already markets and sells Virgin. netinternet services through a licensing agreement with Branson, whoowns the Virgin brand.

NTL's original idea was to extend that agreement to all itsservices, but as the talks progressed it began to focus on anacquisition of Virgin Mobile instead, sources close to the mattersaid.