BSkyB favourite to acquire Tiscali

BSkyB is the favourite to acquire the British operations of Italian telecoms giant Tiscali.

BSkyB has made a £450 million bid to buy the Italian firm’s UK business, according to a report in the Sunday Times.

The Satellite broadcaster is engaged in exclusive talks with Tiscali after the Carphone Warehouse walked away from negotiations, said the Sunday Times.

In September, the Carphone Warehouse bid £150 million less than had been expected for Tiscali, valuing the broadband company at under £450 million.(see The Carphone Warehouse Bids £150m Less For Tiscali).

Tiscali has been up for sale since it launched a strategic review in February. If BSkyB’s bid is successful, it would become the third biggest player in the market behind BT and Virgin Media, with 3.6 million subscribers.

Sky released a first quarter trading update on Friday, revealing that its operating profits were up by 21% to £179 million while revenue increased 5% to £1.25 billion (see BSkyB Reports 21% Profit Rise).

Sky: 08702 40 40 40 www.sky.com Tiscali: www.tiscali.co.uk