Virgin Mobile USA declined to give the New York Stock Exchange (NYSE) a reason for a surge in its stock value this week, saying the company does not comment on unusual market activity. The NYSE asked the MVNO to offer an explanation after the company’s shares soared by 34 percent, to US$4.97, in early morning trading on 1 May. Trading volume was also higher than normal at about 932,000, above the daily average of 538,000 shares.

The jump has sparked speculation that the MVNO may be about to sell itself to a private equity or a strategic investor. The company has reportedly been in talks with a number of parties for several months and is due to report first-quarter earnings on Monday. Last quarter, the company lowered its outlook, saying it was being affected by a slowdown in the economy. Last month, US investment website VentureBeat claimed that the MVNO is preparing to slash 300 jobs – almost three quarters of its workforce – due to a weakening business outlook.