Shares in Virgin Mobile UK touched fresh highs as the market bet on cable suitor NTL raising its £817 million offer or a counter-bidder emerging.

Shares in Britain's fifth-largest mobile phone group touched a record 361 pence before settling at around 358-1/2 pence, a rise of almost one per cent, by 12.30 p.m. The stock remains sharply above NTL's 323 pence-per-share offer price. Virgin Mobile's board has rejected NTL's offer, which it says materially undervalues the company. But top shareholder Richard Branson, the UK entrepreneur, told BBC radio an extra £25 million might help clinch a deal.

"Virgin Mobile is a very operationally geared company and we all know DCF (discount cash flow) valuations can produce any outcome you like," said one trader. "I'm aware that there are some people who have valuations of five pounds per share for this stock - although there are others who would say it's only worth £2.50 (per share)."

Virgin Mobile UK, which muscled into the UK market in 1999, does not own a mobile phone network but buys airtime wholesale from network partner T-Mobile UK to offer Virgin-branded mobile services. It has about 4.1 million customers.

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