NTL is weighing-up a move to dump its US listing for a new listing on the London Stock Exchange after its £962.4 million tie-up with Virgin Mobile.

The cable group, which announced yesterday that it had reached an agreement on a deal with Sir Richard Branson’s mobile business to create the UK’s first “quadruple play” provider, said that its financial advisers had been analysing a switch of the new combined entity from the US to the UK.

The move could see the entry into top half of the FTSE 100 of a £6 billion media powerhouse, offering a serious alternative for UK investors to companies such as BT. It could also help NTL to broaden its concentrated shareholder base.

Jacques Kerrest, chief finance officer of NTL, said: “We have had a number of people looking at (a switch to a UK listing). and it would be huge.”

He emphasised, however, that any such move would be some time away and that other options, such as secondary listing in the UK, were also being weighed up.

The new NTL group, which will have more than nine million customers, hopes to attract customers with such key services as Virgin Sports — a subscription sports channel that could be created if it forges ahead with a bid for the rights to Premier League football.

The group, in which Sir Richard Branson will be the biggest shareholder with a 10.7 per cent stake, aims to go head to head with BSkyB and BT.

James Mooney, NTL’s chairman, said: “If I was Sky or BT I’d be pretty worried.”

NTL, founded by Barclay Knapp, the American entrepreneur, has always been listed only in the US. Although it has contemplated a UK listing before, the idea was never developed after the group fell into bankruptcy protection and re-emergence in 2003.

Last year Simon Duffy, then chief executive, hinted at a potential secondary listing in the UK. However, FTSE rules dictate that only companies domiciled in the UK can qualify for inclusion in the FTSE 100.

A UK listing would make sense for the group because its assets are all in Britain. The logic is likely to be even more compelling after its merger with Telewest and its tie-up with Virgin. However, a move to redomicile would leave it with a significant capital gains tax bill, which it said could run into “hundreds and hundreds of millions of pounds”.

The formal offer for Virgin Mobile includes three options for Virgin shareholders, including an all-share offer. The enlarged company will be rebranded as Virgin over the next 12 months and will have a Virgin Group representative on its board.

NTL first revealed its takeover offer in December. Its overtures were initially frustrated by the Virgin Mobile board, led by chairman Charles Gurassa, which feared that small shareholders were getting a raw deal. This was overcome when Sir Richard agreed to accept less than other investors for the 71.2 per cent stake held by his Virgin Group.

Lending the near-sparkling Virgin brand to a cable group saddled with a reputation for poor customer service is seen as a gamble by some experts.

NTL, however, believes that the brand will act as a transforming magic dust, enabling it, too, to become a “consumer champion”.

VIRGIN SACRIFICE

The choice for Virgin Mobile shareholders

Share and cash offer of 0.18596 NTL shares and 67p in cash per Mobile share held

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