The UK newspaper The Observer is reporting that it has seen a new memo outlining possible private equity approaches to Virgin Media. VMED has been a rumored private target for some time and it is generally accepted that private equity made an offer in upper $20s or low $30s over a year ago. VMED is now trading at $14 and the Observer says that a consortium of Providence Equity, Blackstone, Cinven, and KKR is considering a big of $17 to $22. I strongly advocated for management of VMED to take the prior deal and would do the same again. Financing is going to be tricky on this deal unless the PE firms put in a ton more cash than usual. And of course, a memo is far from an offer. As a result if I were long (thankfully I sold my stock at $26 in 2006) VMED and it popped a couple of bucks today, I’d be selling a significant portion of my position.