Tiscali reviews Pipex dossier
17/05/2007
UK broadband and internet hosting business Pipex has caught the eye of Italian communications company Tiscali. Currently the fourth largest broadband operator in Britain, Tiscali is seeking to expand its operations here, which account for two thirds of its revenue.
Pipex has begun the processes that may lead to a sale by sending a dossier to Tiscali, who is currently looking over the document. Pipex, which hs been up for sale since March, has seen the initial burst of interest slow down to less than a trickle as its most likely suitor, BT, declined to place an offer having been put off by the company’s web hosting arm.
A smaller rival to Tiscali, the UK’s sixth largest broadband operator could make a useful addition to Tiscali’s operations, with 570,000 broadband users to add to Tiscali’s 1.5m. Combined, the businesses could make a rival to third-placed Carphone Warehouse, which currently holds 2.2m subscribers.
Discussions are at a very preliminary phase, with ‘values or figures’ not yet having been discussed. Tiscali’s chief financial officer Massimo Cristofori has commented however that Tiscali certainly has the resources necessary, commenting that as its debt is below that of its competitors, “we have the possibility to take on acquisitions”.
