Virgin Mobile has said that a takeover offer from cable operator NTL was too low.
The proposed deal, offered 0.09298 shares of NTL common stock per Virgin Mobile share, or a cash payment of £3.23 (US$5.62) per share. Virgin Mobile shares closed in London Friday at £3.13.
Virgin Mobile said its board had carefully considered the offer and concluded that it undervalued the company.
Virgin Mobile is a mobile virtual network operator, meaning it doesnt own its own cellular networks but resells service from other operators. It offers service in the UK, the U.S., Canada and Australia.
NTL said it hoped to buy Virgin Mobile so that it could offer customers a "quadruple play" including Internet, television, fixed line and mobile services.
NTL and Virgin are already partners in another venture. NTL has a license agreement with Virgin Enterprises for the exclusive use of the Virgin brand in broadband. NTL is also negotiating with Virgin Enterprises on a similar license for television, fixed line and mobile telephony.