BBC 'looks for equity for Virgin TV bid'

BBC Worldwide is looking for private equity firms to help finance a bid for Virgin Media Television, a report has claimed.

A purchase of Virgin's channels division would give Worldwide full ownership of the UKTV family - it is currently shared half-and-half with Virgin - as well as services such as Living TV, Bravo and Virgin 1.

The Sunday Telegraph yesterday said Worldwide was in talks about a combined offer with investment firms Cinven, Kohlberg Kravis Roberts and Providence Equity Partners. Credit Suisse is also said to be giving advice on a purchase.

Consultants firm Goldman Sachs has been reviewing Virgin TV with a view to a sale since March, though a buyout of UKTV has been rumoured on-and-off for several years. It was previously owned by Telewest under the Flextech division.

Under its ownership agreement, the BBC can block any transfer of Virgin's half of UKTV. A purchase by Worldwide would avoid this problem.