BSkyB talks hit a hurdle

Published Date: 24 December 2008

Takeover discussions between broadcasting giant BSkyB and broadband firm Tiscali have stalled after the two firms were unable to agree on price, it was reported yesterday.

BSkyB is understood to have offered around 100m less than the 450m price being sought by the Italian group, according to a report.

The two firms confirmed they were in discussions at the beginning of November after a lengthy beauty parade.

But Tiscali is now said to be holding crunch talks to decide whether to go through with the sale. A takeover of Tiscali would have doubled BSkyB's broadband customer base to 3.6 million and sealed the broadcaster's position as the third biggest player in the market behind BT and Virgin Media.

Tiscali, which has operations across the UK and Italy, has been up for sale since it launched a strategic review in February.

Other suitors in the auction for the firm's British assets are thought to have included Carphone Warehouse, Vodafone and BT. It is thought that many pulled out of the process after concerns over price.