Carlyle, the US private equity giant, is considering axeing the Virgin brand name if it takes over UK cable group Virgin Media. Such a move would sever the media company's connection with Richard Branson, and pave the way for a rapprochement with Rupert Murdoch's BSkyB.Virgin Media and the satellite operator have been locked in a bitter row since the end of last year when Murdoch thwarted an attempt by the cable firm to take over ITV by acquiring a blocking stake.
Carlyle, which has offered £11bn for Virgin Media, is weighing the merits of retaining its connection with Branson's Virgin on the grounds that without him, it may be easier to restore relations with BSkyB, whose basic channels have been withdrawn from cable following a spat over pricing.
Branson has accused Murdoch of trying to stifle competition by withdrawing channels such as Sky One and Sky News, and by his move on ITV. The issues raised by the extraordinary clash between the two business titans are the subject of an inquiry by the competition authorities and being fought out in the courts.
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