Second Virgin Mobile bid expected from NTL

NTL could soon increase its offer for mobile virtual network operator (MVNO) Virgin Mobile.

The broadband company originally bid £817m for Virgin Mobile but saw its offer turned down last month, with the MVNO's board of directors labelling the proposal as "materially undervaluing" the company.

Now, according to reports, NTL is preparing to boost its offer to 360p per share - an increase of around 10 per cent on its previous price - in an effort to woo the mobile company.

Virgin Mobile head Richard Branson indicated in December that a £25m raise in the offer price would be enough to seal the deal. NTL declined to comment on any revised offer.

NTL has been targeting the mobile phone company in an effort to build a quadruple play offering - broadband, pay TV, mobile and landline phone services.

NTL's last acquisition - the $6bn takeover of Telewest - was approved by the Office of Fair Trading last week.

The Office of Fair Trading has also now approved the union of Easynet and BSkyB, first announced in October.