Update: Italian telco and ISP Tiscali has shelled out E900 million (£570 million) in shares for European ISP, LibertySurf, the companies confirmed this morning after suspending shares first thing this morning.

LibertySurf's major shareholders - British retail corporation, Kingfisher PLC, and Euro@web, owned by the Bernard Arnault family - will receive around E235 million (£149 million) each for their share (35 per cent each) in the ISP.

Commenting on the deal, Group CE Sir Geoffrey Mulcahy said: "LibertySurf has been a successful e-commerce venture for Kingfisher.

"With the European ISP market now consolidating, today's deal enables us to realise this value created for our shareholders.

Tiscali has been actively buying ISPs in Europe and is often touted as a potential buyer whenever a major ISP comes up for sale.

Last year it bought Dutch ISP World Online. In December, it coughed up E29 million (£18 million) for German ISP, AddCom AG. It is also reportedly in the frame to buy British ISP LineOne. ®

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