VIRGIN MEDIA has drawn up plans to withdraw from the corporate telecoms market as chief executive Neil Berkett concentrates on recruiting cable TV and broadband consumers.

A sale of the division, which hooks up small businesses to the internet and also holds a number of local-authority contracts, could raise £600m for Virgin. However, combining it with another telecoms supplier, rather than a straight disposal, is the most likely exit.

The investment bank Goldman Sachs formulated a proposal to combine Virgin’s operation with Thus, which is now being bought for £329m by Cable & Wireless. The plan discussed with Thus would have injected private-equity money into the enlarged group. A reseller agreement, so traffic would still be carried on Virgin’s network, was also prepared.

Virgin’s business division had sales of £642m last year, though it has warned this will fall. Bankers estimate it makes a profit of £100m.

Another merger candidate could be KCOM, but the former Kingston Communications is not thought to be interested.

Berkett is also considering the future of Virgin’s content division, including the Bravo and Trouble channels and a half share in UKTV. Virgin, which issues second-quarter figures on Thursday, is still trying to resolve the standoff with BSkyB, 39%-owned by News Corporation, parent company of The Sunday Times, over the carriage of each other’s channels.

WPP deal with Ipsos Mori

WPP has struck a deal with market researcher Ipsos Mori to sell on the TV ratings arm of Taylor Nelson Sofres for up to £92m if its planned £1.16 billion takeover hits regulatory trouble. WPP is concerned that Brussels may object to a reduction in audience-measurement suppliers from three to two.

The concession is contained in its offer document, sent to shareholders this weekend. Taylor Nelson has rejected the offer. Its former merger partner, GfK, is still aiming for a counterbid.

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