UK ISP Claranet is in the final stages of acquiring London-based business ISP Netscalibur, according to sources familiar with the situation.

The deal is expected to be completed within the next week or so although exact details have yet to be released.

However, insiders have expressed fears that the acquisition could lead to job losses both at Netscalibur and Claranet.

Steve Rawlinson, MD of Claranet's UK operations, declined to comment on the story although he admitted that Claranet was currently "looking at a number of acquisitions".

He said he was unable to name or discuss any of the companies concerned due to legal reasons.

Netscalibur is also keeping mum with a spokesman telling us that the company didn't "comment on unsubstantiated allegations".

Although both companies have declined to comment, the pair do have some history. Last year, for example, Claranet bought Netscalibur's German operation for an undisclosed sum giving Claranet operations in Berlin, Munich and Frankfurt.

Backed by €250m and funded by the likes of Morgan Stanley, TLcom Capital Partners and Goldman Sachs, Netscalibur describes itself as a "new generation of knowledge-based telco", serving more than 10,000 businesses in Europe. ®