Feeds

Tiscali subscribers to be sold to Vodafone tomorrow: report

Deal will jump Voda forward in broadband market

Build a business case: developing custom apps

The Italian board of Tiscali will tomorrow approve a Vodafone offer to buy its broadband businesses outright, according to a report.

The claims have been made in the Italian newspaper MF, and have been believed by investors, who have sent shares in Tiscali rocketing this morning.

The bid is said to be worth about €2.8 per share, which would value Tiscali's broadband base at €1.6bn. The current share price of €2.54 gives Tiscali a market capitalisation of €1.46bn.

Tiscali representatives said no decision has been taken yet, Thomson Financial reports.

Unlike rivals at O2 and Orange, Vodafone shunned running its own fixed line broadband network when bundling up services was all the rage in 2006. Instead it preffered to offer mobile subscribers ADSL via a reseller deal with BT Wholesale that has been largely overlooked.

Buying Tiscali would leapfrog Vodafone into fourth in the overall broadband market, and first among mobile operators that offer fixed line internet access. It's unclear what ownership of its own network would mean for its relationship with BT.

Earlier in May, Carphone Warehouse's bid was rejected by the Tiscali board. Sky has also reportedly expressed interest in the firm's almost 1.9 million UK customers.

Tiscali also owns the Pipex, Nildram and Freedom2Surf brands. ®

The essential guide to IT transformation

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.