Thus - the Scottish telco behind the Demon internet brand - is on the verge of buying Your Communications, according to The Scotsman.

It reports that the deal could be announced as early as this week, although a spokeswoman for Thus - which tried and failed to acquire rival telco Energis earlier this year - declined to comment on what she described as "rumour and speculation".

In preparing to flog Your Communications - which offers voice, data and mobile services to the public sector and SMEs predominantly in the Midlands and North of England - UU announced it was taking a hit on the value of the business and halving the net asset value to around £98m.

Speaking earlier this month outgoing UU chief exec John Roberts said: "We have recognised for some time that consolidation of the telecoms sector has been overdue, and we are now seeing evidence of deals being done.

"[It is] our view that the interests of our telecoms business are best served by its participation in the current round of consolidation in its industry through a sale process." ®

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• Demon hosting back online (3 October 2006)
• Cheeky BT tries to poach 'displaced' C&W punters (9 March 2006)
• Thus acquisition of Your Comms gets green light (24 February 2006)
• Thus to axe 280 jobs (2 February 2006)
• Thus agrees to buy Your Comms and Legend (1 February 2006)
• Carphone swallows Onetel, Tele2 (19 December 2005)
• OneTel sale in doubt (5 December 2005)
• Fibernet gets a nibble (2 December 2005)
• Your Communications up for sale (1 December 2005)
• Your Comms boss rubbishes Carphone takeover rumours (9 August 2005)
• Carphone to buy Your Communications - report (5 August 2005)
• Your Communications seeks buyer (20 September 2004)
• Your Communications buys Eurocall (1 March 2004)