Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a656131

Buxton: Liberty bid finally highlights Virgin Media's cash-flow power

by Emma Dunkley on Feb 05, 2013 at 14:21

Buxton: Liberty bid finally highlights Virgin Media's cash-flow power

Richard Buxton, head of UK equities at Schroders, believes Virgin Media’s strong cash-flows have gone unrecognised and that this is only changing amid take-over talks with Liberty Global.

It emerged last night that Liberty, the US media group chaired by billionaire John Malone, is preparing to bid for Virgin Media, which saw the UK cable operator’s shares soar 16% or £3.85 higher, to £28.58.

Citywire A-rated Buxton, who has 3.5% of his UK Alpha Plus fund in Virgin Media, believes the company is a ‘winner’ in its field.

‘We’ve been shareholders in Virgin Media since it listed in London, firmly believing that the strength of its competitive positioning would ensure that it is a winner in UK broadband and TV,’ said Buxton.

‘The strength of the cash-flows has not been recognised sufficiently to date by the market and it is interesting that an experienced owner of cable has done so.’

According to the Financial Times Liberty has a $3.3 billion cash pile with which to part fund a deal. Virgin Media, which has a main listing on the US Nasdaq technology exchange and a secondary listing in London, was worth £6.7 billion ($10.6 billion) before today's surge.

Over three years to 4 February, Buxton's fund has delivered 45.8%, far outstripping the benchmark’s 35%.

 

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:

Look up the funds

  • Schroder UK Alpha Plus A Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the shares

  • Schroders PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Virgin Media Inc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Richard Buxton
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet