The paper said that Branson is happy to collect a smaller sum for his shareholding in return for licensing fees for the Virgin brand which is owned by Virgin Enterprises, which he owns 100 per cent.
Last week's offer of 323p per share was rejected by the Virgin Mobile board despite Branson saying that he was willing to accept 300p per share.
It is estimated that Branson will net more than £100m over 10 years by allowing cable firm NTL to use the Virgin brand, according to The Observer.
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