NTL, Virgin Reported Talking Merger

U.K. cable company NTL (NTLI Quote) is in merger talks with billionaire Richard Branson's Virgin Mobile, according to news reports Sunday.

Such a combination could create a cable giant to rival Rupert Murdoch's British Sky Broadcasting Group (BSY Quote), the U.K.'s biggest pay-TV provider.

Branson owns about 72% of Virgin Mobile's stock, which trades on the London Stock Exchange. He would trade his shares for NTL stock, making him the largest shareholder in the new company.

The Sunday Telegraph reported the new company would be worth 4.5 billion pounds, or about $7.80 billion.

Cable operators have been considering adding mobile phone services to their offerings in order to get a leg up on telephone and satellite competitors.

Both NTL and Virgin Mobile reportedly declined to comment Sunday, but several reports said an announcement was expected Monday.

Shares of NTL finished Friday up 42 cents at $60.10.