BSkyB (Sky Broadband / Sky TV) has reportedly pulled out of sale talks with Tiscali UK because of differences over the price. Tiscali had originally hoped to get £600m for its UK division, though BSkyB initially entered talks with a figure of £450m in mind, which is almost identical to one tabled by The Carphone Warehouse (TalkTalk) in September.

However The Guardian reports that Tiscali UK's continued poor performance, such as its recent decline in broadband subscribers (news), has called even BSkyB's lower offer into question.

The news will come as a blow to Tiscali's customers, which would have benefitted from the investment BSkyB could have brought. The ISP has now been up for sale since May 2008 and is operating in an increasingly difficult market with very few rivals being likely to risk further acquisitions.

It's unclear what will happen next although Tiscali could agree a lower price and thus restart negotiations. In addition The Carphone Warehouse (TalkTalk) is still believed to have a passing interest, despite its two prior offers being shunned. Now is perhaps not the best time for Tiscali to be choosy.