NTL targeted for fresh equity bid

[BGonaSTICK]

Private equity firms are preparing a fresh £10 billion bid for UK comms group NTL, according to The Times, which reports that disgruntled shareholders are lodging a formal complaint against the cable group’s rejection in 2005 of a £9 billion offer. It is understood that four private equity groups are showing a renewed interest in NTL, whose shares have fallen 20 per cent over the past four months.

The bid approach, which is understood to be dependent on NTL’s share price falling below its current level of $24.42, would represent one of the largest private equity buyouts.

A number of key investors plan to complain about the rejection of a private equity approach at the end of 2005. At the time, NTL contended that the approach undervalued the group and maintained that it could create better value for shareholders as an independent company.