Dow Jones said that a “person familiar with the matter” gave the information that Carlyle has offered between $33 and $35 per share for Virgin Media. The company also has about 6 billion pounds ($12.1 billion) in debt.

UBS said that about the 5.5 billion pound private equity approach for Virgin Media could result in a reduction of competitive pressure on rival British Sky Broadcasting PLC.

"It could also result in a more pragmatic approach, with Sky and Virgin finally reaching an agreement on Sky basics which could be in the interests of both groups and Virgin Media customers," analysts said.

The deal began almost a year after a group led by Providence Equity Partners Inc. tried to buy the company, at that time named as NTL Inc., for more than $8 billion. That group may make a rival offer, the people said. Billionaire Richard Branson's has about 6.5 percent stake of Virgin Media, which has such competitors as British Sky Broadcasting Group Plc and BT Group Plc in selling combined TV, Internet and phone services.

``With Virgin Media there is no growth story,'' said David Thomson, an analyst at Bryan Garnier & Co. in London. Private equity firms are always interested in ``functional improvements in the operations. The cash-flow is reasonable.''

Emma Thorpe, a spokeswoman for Carlyle in London gave no comments. Nick Fox, a spokesman for Virgin Media at London-based M: Communications did the same.

Virgin Media published its seventh consecutive quarterly loss. The company was founded when NTL bought Branson's Virgin Mobile Holdings Plc in July 2006. NTL bought Telewest Global Inc., Britain's No. 2 cable operator, four months earlier for $6 billion.

Virgin Media shares went up by 17 percent to $28.51 a share in German trading today. Credit-default swaps, which are based on the company's debt increased by 20,000 euros to 430,000 euros today, according to JPMorgan Chase & Co prices, which indicates worsening perceptions of credit quality.
Virgin Media shares decreased by 18 percent after it was announced about the Virgin Mobile takeover.

``A deal is in the right area that people are talking about,'' Bryan Garnier's Thomson said. Virgin Media's strategy is ``the convergence of media and telecom.''

About Carlyle Group
According to the company web site the Carlyle Group is one of the world’s largest private equity firms, with more than $58.5 billion under management. With 51 funds across four investment disciplines (buyouts, venture & growth capital, real estate and leveraged finance), Carlyle combines global vision with local insight, relying on a top-flight team of more than 400 investment professionals operating out of offices in 18 countries to uncover superior opportunities in North America, Europe, Asia, Australia and Africa. - Alla Harutyunyan for HULIQ.COM