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.