Private equity investors could table a formal bid of around $20 billion for British cable television and broadband company NTL some time next week, according to a source.
A group of private equity firms, including Providence Equity Partners and the Blackstone Group, approached the NTL board over a possible bid at the start of August, the source said.
During that initial meeting NTL management signalled that it would not stand in the way of a takeover if the price was right, and a number of informal discussions have been held since then, added the insider.
NTL last year turned down a reported £9 billion sterling bid from a consortium containing Blackstone, Cinven, BC Partners and Permira Advisers.
At the time, NTL argued that the $32-a-share offer undervalued the business, which had just agreed to merge with rival Telewest, completing the consolidation of the Britain's once-fragmented cable industry.
But the integration of Telewest has not gone as smoothly as hoped, and a turf war in the UK broadband market and the increasing popularity of free digital TV service Freeview have further undermined NTL's position.
Investors are understood to be holding out for a bid of around $30 per share, valuing the equity at some $10 billion. NTL also has debts of around $10 billion. Yesterday, the US-listed stock closed at just over $25.