The cost of insuring against a default by heavily-indebted cable group NTL climbed this morning as four private equity groups reportedly prepared to launch a £10bn (€14.8bn) takeover bid in what would become the biggest leveraged buyout in Europe.

Bloomberg reports that private equity firms The Blackstone Group, Kohlberg Kravis Roberts, Providence Equity Partners and Cinven have formed a consortium to mull a bid for NTL. They could make a takeover proposal this week.