Tiscali confirms BskyB takeover rumours

Italy-based broadband provider Tiscali has seen its share price soar after giving official confirmation that it is in merger talks with BSkyB.

If negotiations prove successful, BSkyB will take over Tiscali’s UK broadband business for an estimated £450 million.

Tiscali’s share price escalated 40% yesterday when it issued a one sentence press release confirming discussions with BSkyB.

Tiscali has been up for sale since its February strategic review.

The company missed a self-imposed June sale deadline after talks with Vodafone fell through at the last minute.

Other companies that have considered a takeover bid but then walked away include BT and Carphone Warehouse.

If BSkyB’s bid is successful, it will become the third biggest broadband provider in the UK.

Story link: Tiscali confirms BskyB takeover rumours