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Wanadoo, the cash-rich ISP majority-owned by French Telecom, has "entered the race to buy Freeserve", Sunday Business claims.

Freeserve clearly has the for sale sign dangling over its head, but will it want to be owned by the French? In June, negotiations with T-Online, the German ISP giant collapsed, in disagreement over price and "culture".

At the time, it carried a price tag of £6 billion - now it is a more realistic £ 2.4 billion. This will improve the chance of a deal (with someone),according to analysts cited by Sunday Business. It will also encourage Dixons, the majority owner of Freeserve, to swap for more highly rated shares - and cash in some money - before the ISP's price falls even further. ®

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