Talks between Sky and Tiscali over the satellite broadcaster’s purchase of Tiscali’s UK assets have broken down due to deteriorating market conditions.
Tiscali said today that talks with BSkyB are “almost impossible” to continue due to the financial climate. On Friday, Tiscali suspended its shares and asked banks to halt its interest repayments while it attempts to renegotiate its financial position and come up with a new business plan.
It was revealed towards the end of last year that Sky was interested in a £450 million deal to acquire Tiscali’s UK operations, after Carphone Warehouse walked away from negotiations (see BSkyB Makes £450m Bid For Tiscali).
In September, Carphone Warehouse had bid £150 million less than had been expected for Tiscali, valuing the broadband company at under £450 million.
Tiscali has long term debts of €500 million (£449 million), €400 million (£359 million) of which is a loan and the rest credit facilities.
