Cable operator Virgin Media on Tuesday postponed the sale of the company after it became apparent buyers would not have access to the debt needed to do a deal right away.

Virgin Media has become the latest victim of the $400 billion (197 million pound) backlog of debt financing that banks are struggling to sell to investors, making it tougher for borrowers to secure funds for new takeovers, especially larger ones.

The company — whose market capitalisation is $7.7 billion and which also has about $12 billion of debt — acknowledged it had received a takeover approach last month. Sources familiar with the situation said it was from private equity firm Carlyle Group for more than $30 a share.

Virgin Media said on Tuesday, however, that its financial advisers — Goldman Sachs and UBS — recommended the strategic review process be extended until potential strategic partners or bidders “can complete their proposals in a more stable debt market environment”.

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Posted: 08|7|07 at 11:48 am. Filed under: Auction News.