Virgin May Offload Its Corporate Business Arm

In its efforts to raise investments for its range of broadband and residential cable television services, Virgin Media may sell off its corporate networking and communications division, NTL Telewest Business, The Times reported.

The move is expected to generate as much as GBP600 million for Virgin, which would assist the company in contesting against its rivals in residential broadband services, the newspaper added.

Virgin Media’s financial advisor Goldman Sachs, has reportedly drawn up a proposal for merging the division with the Scottish Telecom Company, Thus, which is impending to be acquired by Cable and Wireless for GBP329 million.

However, rumours about Virgin Media considering the auction of its content division, Virgin Media Television have continued to flare since March this year.

The company has already incurred an operating loss worth GBP4.6 million in its first quarter for the fiscal, and is expected to release financial results for the second quarter, later this week.