Virgin Mobile: 'We are not asking for more money'

Virgin Mobile has issued a statement saying it is not touting for a higher price from its suitor NTL, following its rejection of an £817m bid for the company.

Virgin boss Sir Richard Branson said in an interview with BBC Radio 4's Today programme that he is sure Virgin Mobile and NTL will be able to reach a compromise on the acquisition.

According to Branson, the difference between NTL's original 323p per share offer and Virgin Mobile's desired buying price is £25m.

Branson told Radio 4 he expected NTL to be willing to pay extra for the MVNO (mobile virtual network operator). He said: "I don't think that NTL are going to fall out over what is a relatively small amount of money."

However, Virgin Mobile issued a statement to the effect that the mobile company had not been actively soliciting more cash from NTL.

The MVNO said in a statement: "The Independent Board confirms that, in reaching its decision, it only considered the 323p per share potential offer price announced by NTL. It did not consider any other price, nor did it solicit any other price."

The statement continued: "The Independent Board concluded that the potential offer materially undervalues Virgin Mobile."