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Carphone Warehouse Could Bid for Tiscali UK

Posted: 03rd Apr, 2008 By: MarkJ
Sources close to The Carphone Warehouse (AOL UK, TalkTalk) have informed The Times that the operator is interested in bidding for Tiscali UK, provided the price is right. The news follows Mondays report (here) that Tiscali expected to find a buyer before the end of this month.

However, Tiscali reportedly dislikes the idea of breaking up its domestic and international operations. Naturally BT Group, Sky and Vodafone, the usual suspects, are all rumoured to have an interest in Tiscali. Telecom Italia and Fastweb are also said to be keen.

Including Pipex, Tiscali has a firm 2m strong grip on the UK's broadband market (Estimated value: £550m to £650m), making it a very attractive prospect for any buyer. Indeed the provider’s budget priced business model falls roughly in line with Carphone's existing TalkTalk brand. Sadly both parties have had their problems in the customer support department.

By comparison Vodafone, which has so far failed to get its broadband feet off the ground, could easily use Tiscali to make a name for itself. Ironically Vodafone has also been linked with earlier rumours of a Carphone Warehouse sale too (news).
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