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ISP Tiscali UK Goes On Sale For £600m!

Posted: 18th Dec, 2006 By: MarkJ
UPDATE: Tiscali has denied talk of a sale, rebuffing 'The Independents' article as being without foundation. Tiscali has placed the UK division of its ISP up for sale at £600m. The provider will be looking towards the likes of BSkyB, Orange, Carphone Warehouse, NTL or BT to take the strain:

The company, which has 1.4 million broadband and 50,000 pay-TV customers in Britain, sent a memorandum of sale to potential buyers last week. BSkyB, Orange, Carphone Warehouse, NTL and BT are all likely to be interested in the business, as they try to consolidate their positions in a viciously competitive market.

It is believed that Tiscali UK, headed by its chief executive, Mary Turner, generates profits of around £30m per year.

It is likely to be the last big British internet player that comes up for sale as companies in the sector choose to bolster their competitive positions or bail out altogether.

The Independent on Sunday item reports that none of the most likely buyers have offered any comment. Most of the major providers, bar BT and Orange, are also being kept busy with restructuring and existing consolidation.

This all begs the question, who will buy Tiscali? There is no doubt that the provider is a prominent force in the UK ISP market, so there's bound to be interest, but anything this big requires strong commitment and deep pockets.
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