Tiscali chief executive Mario Rosso has said the company will pick a buyer by the end of the month.
Talks are ongoing with several prospective buyers. Vodafone is rumoured to have made an offer for both Tiscali's British and Italian operations, and to be the leading candidate.
The other firms interested in a takeover, which include Sky, Swisscom-owned Fastweb and Italian mobile operator Wind, are thought to want to split the company in two.
"The decision will reasonably be taken by the end of June," said Rosso.
The company's most valuable assets are in the UK, where it is one of the largest broadband providers and operates the Tiscali TV, the television-over-DSL service.