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Legend ISP is takeover target

Prelim talks held

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Lancaster-based ISP Legend Communications has confirmed that it is holding talks to flog the company.

In a statement the ISP said it was "engaged in preliminary talks, which may or may not lead to an offer being made for the company".

It went on: "The talks are at a very early stage and there is no certainty that any offer will be made."

According to rumours bouncing around Legend, favourites to acquire the ISP are Pipex and Scottish Telco Thus.

No one from Pipex was available for comment while a spokeswoman for Thus - which last week confirmed it had money to spend on new businesses - declined to add anything further.

In the Summer Legend - which used to be known as Business Serve - cut its work force after issuing a trading statement warning that its broadband business was being squeezed and that it had been hit by "two bad debts" amounting to some £200,000.

At this stage it's still not known how many people lost their jobs although insiders have told us that most of the sales staff got the push.

In August the company said: "Although trading at the beginning of the financial year was in line with management expectations the last few weeks have proved to be particularly challenging.

"The downturn in trading is attributable to continuing margin pressure on the ADSL business line and an unexpected decrease in customer renewal rates." ®

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