The fact that Tiscali broadband has been up for sale for some time has probably been the worst kept secret in the UK broadband industry. However, as we approach the business end of the proposed sale it looks as though the group may well struggle to raise the figures which were suggested some months ago. Company insiders claim that all but Carphone Warehouse and another unnamed bidder have stepped back from the auction leaving the way open for the growing mobile and broadband giant.
Initially many had expected something of a bidding war between the likes of Carphone Warehouse (which has over £1 billion burning a hole in its pocket), BT and Sky Broadband with figures of £600 million plus mentioned. While nothing is yet sealed, and BT and Sky could still come back into the reckoning, it appears that the Carphone Warehouse’s offer of around £450 million is only one of two actively being pursued.
If Carphone Warehouse is successful it will see the group leapfrog BT into first place in the UK broadband supplier league. Tiscali current has around 1.8 million broadband customers and when combining that with the 2.8 million (and growing) currently on the Carphone Warehouse books, they will make a formidable force in the industry.