Branson: Murdoch's tactics will backfire

Published on Sunday 15 July 2007 01:57

SIR Richard Branson has revealed he is willing to discuss buying Virgin Radio and accused BSkyB's James Murdoch of "using the might of his empire to make smaller competitors kowtow to his decisions".

In an interview with Scotland on Sunday, Branson said he would be happy to talk to SMG if it chose to sell rather than float the Virgin Radio business. As for Murdoch, he said the competition inquiry into BSkyB's acquisition of a 17.9% stake in ITV - which effectively scuppered Virgin Media's takeover of the television station - and the row over programme fees would "backfire on him".

Branson was responding to questions about the Virgin group's recent series of setbacks, including a loss of customers at Virgin Media, which is also facing a potential bid, and the loss of Virgin Rail's cross-country services last week to Arriva.

The tycoon maintained that Virgin is "in the strongest position it has ever been" based on the views of respondents to the brand. He said people have always been ready to write him off each time there is a setback.

Branson is also involved in a number of new worldwide projects, including a budget airline in America and fitness centres in Australia, and he plans to unveil details of a new airline service in the next couple of weeks.

He said the flotation of Virgin Mobile in America is on course and he expects to hear the outcome of the bid for the east coast main line franchise within a month.

If the Virgin-Stagecoach bid succeeds, he said that in the longer term he would like to resurrect plans for a 300mph service between Edinburgh and London using TGV-style trains.