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Pipex & Tiscali Deal Grows Increasingly Likely

Posted: 13th Jun, 2007 By: MarkJ
Reports claim that a buyout of UK ISP Pipex by rival Tiscali is looking increasingly likely. It's alleged that some staff have been against a deal because of Tiscali's poor reputation for customer service, although Pipex haven't exactly been perfect themselves:

In the meantime, managers are working out the personnel carve-up, with employees destinations in the split already decided.

As part of the deal, Tiscali will provide the refocused ISP with access to its unbundled network, which is one of the most extensive in the UK and should lower its costs in providing broadband. Tiscali has unbundled more than 400 exchanges, compared to Pipex's 100.

Pipex has about 570,000 customers across its broadband brands, which include Toucan and Bulldog. Each of the big players in the dog-eat-dog communications market - Virgin Media, BT, Sky, Carphone Warehouse - have been linked with a bid for the firm, but have all fallen by the wayside amid rumours of an over-ambitious valuation and concerns over its diverse interests.

Naturally both sides have refused to comment on The Register's story, although customers of Pipex's own service and secondary providers (Bulldog, Toucan etc.) will no doubt be increasingly concerned.

It's believed that the terms of any such deal could be revealed within four to eight weeks. We'll be crossing our fingers that any agreement doesn't cause harm to Nildram, Bulldog and other related ISP’s.
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