Telecoms group ntl is understood to be planning to increase its takeover offer for Virgin Mobile.
It is thought ntl, which employs about 300 at its base in Stockton, is considering raising its bid for the group to 360p a share, and could table the new offer as early as next week, according to reports.
The new offer would be just over 10pc more than the 323p a share bid that was originally tabled for the group.
The initial offer, which valued the group at £817m, was rejected by Virgin Mobile's independent directors.
Ntl's chief executive Simon Duffy, who is being advised by Goldman Sachs, is understood to recognise the need to increase the offer in order to win the support of institutional shareholders who have a 28pc stake in Virgin Mobile.
But the offer may still not be high enough, with shares in Virgin Mobile closing at 377p on Friday.
Ntl's initial offer was the result of months of secret negotiations between Mr Duffy and Sir Richard Branson, whose Virgin Group holds a 72pc stake in the mobile business.
Ntl, which is currently in the process of merging with former rival Telewest, is keen to acquire Virgin Mobile to become a "quadruple play" provider, offering mobile and fixed-line phones, Internet broadband and television.
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