Carphone Warehouse suffers Tiscali bid setback

 

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Posted on 13 May 2008 at 11:17

Carphone Warehouse has apparently been scratched off a list of potential buyers by Tiscali.

According to a report in the Financial Times, Tiscali scrubbed Carphone Warehouse from its shortlist after a four-hour board meeting to narrow down potential suitors. Apparently, the company thought Carphone Warehouse's bid of £550 million fell short of its own valuation of its UK assets.

The report claims Tiscali is now ready to open its books to six suitors, with Vodafone and British Sky Broadcasting among them. The sale is expected to be concluded next month, after wrapping up due diligence.

Carphone Warehouse, the UK's third largest broadband provider, apparently remains keen to buy the company and has received a substantial war-chest following the sale of 50% of its retail operations to US electronics firm BestBuy for £1.1 billion.

However, it now appears Carphone Warehouse will need to markedly improve its offer if it's to snap-up Tiscali and become the UK's largest broadband provider ahead of BT and Virgin Media.

Tiscali and Carphone Warehouse declined to comment on the story, saying they do not respond to speculation.

Author: Stuart Turton