Carphone Warehouse set to capture Tiscali UK
One of the longest-running disposal programs could soon come to an end with rumours in the market that Carphone Warehouse, the owner of the AOL broadband business, is set to acquire Tiscali's UK broadband operation for a mere £200 million. This is less than half of the price which Carphone Warehouse offered only last year when a £550 million deal was under discussion, before the company walked away and Sky broadband stepped in, only to see its own offer fall by the wayside.
While the deal is yet to be confirmed, inside sources claim that Carphone Warehouse is on the verge of agreeing a £200 million deal which will add around 1.7 million customers to its AOL brand. This would be a significant move for Carphone Warehouse which has for some time received severe criticism for its indecision as to whether it was going to spin off the broadband operation or sell to a rival.
This deal could throw a lifeline to the main Tiscali business which has seen its shares suspended in Italy and talks to banks ongoing for some time. While there were rumours of Sky broadband entering the bidding for the UK operation, it would appear that the company has failed to register an offer to gazump the Carphone Warehouse bid. Whether this may change in the short term, prior to any Carphone Warehouse deal being officially agreed, very much remains to be seen.
Share this..
Related stories
Another Bradford And Bingley Director Bites The Dust
News that Mark Stevens the respected group sales director of troubled Bradford and Bingley has given notice to quit the group has weakened a group which seems to be in something of a terminal decline. Richard Pym the new chief executive of Bradford and Bingley has expressed his regret at the decision of Mr Stevens but it seems that his mind is made up. So what next for the once famous Bradford a...
Read MoreWhere are the efficiency savings in the public sector?
A report from the Office of National Statistics shows that there are nearly 1,000,000 more public sector workers in the UK today compared to the day Labour gained power over a decade ago. There are now 6 million workers under the state but there appears to be a significant reduction in productivity compared to the private sector. So what is going on? As we covered in one of our early articles,...
Read MoreWill Royal Bank of Scotland directors call the government's bluff?
The UK government is on a collision course with Royal Bank of Scotland directors who have previously suggested they would consider a mass resignation if the authorities meddle in banking affairs. We are now at the intriguing scenario where potentially a battle of wits between the government and the Royal Bank of Scotland, and potentially Lloyds bank directors, could be about to explode in the New...
Read MoreGordon Brown belittled by fellow G20 members
While only 12 months ago Gordon Brown's reputation was sky-high amongst the developed economies of the world and his fellow G20 members things have changed!
Even though they say a week in politics is a long time, a year for G20 members has seen a massive turnaround in reputations and power. Gordon Brown, once the darling of the G20, has this week been ridiculed by his fellow members...
How much does Kraft Foods really want Cadbury?
As Cadbury shares broke through the eight pound barrier today, on expectations of a bidding war for the company, many analysts are now wondering how much Kraft Foods really wants Cadbury. There is growing speculation regarding the company with renewed rumours of a potential bidder from smaller US outfit Hershey. However, there is no doubt that Kraft Foods has the firepower and the finance to blow...
Read More