The TalkTalk Group (formerly Carphone Warehouse) has officially come to an agreement with Tiscali S.p.A. (TIS) concerning the final sale price of broadband ISP Tiscali UK, which was ultimately sold to TalkTalk in May 2009 for a measly £236m.

It later emerged that Tiscali had pegged the value of its business too high. This was due in no small part to the change in customer numbers that took place during negotiations (Tiscali did go through a period of customer bleed) and has now resulted in a £21m reduction (offset by a £6m working capital adjustment).

In other words TalkTalk has managed to save themselves £15m as a net cash benefit. It's amazing to think that during early 2008 some estimates put Tiscali UK's worth at between £550m and £650m. The Carphone Warehouse initially made an offer of around £450m, which was rejected.

Later Vodafone tabled a cautious £1.26bn for the whole group, but pulled out. Then BSkyB even had a bash and is believed to have initially also tabled an offer of around £450m or less. Tiscali thought, mistakenly, that they were worth more and ended up holding out so long that it ruined their chances of ever getting a good deal. Bad management at its finest.