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Tiscali Rejects £550m Takeover Bid, Wants £1.13bn

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It could be argued that the way forward for a struggling ISP is not to buy another struggling ISP and with Tiscali now fielding takeover bids it looks like the move hasn't paid off.
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This week the company has turned down an offer of £550m from the newly minted Carphone Warehouse for its UK assets as it attempts to hold out for a bid closer to its current (but wobbly) market value of £1.13bn.

"Until now, the process has been going exactly as expected. In the definition of the shortlist, we have not considered those who did not realise (sic) the industrial value of the group," said Tiscali CEO Mario Rosso.

Despite this hard-line stance (a potentially risky one given the company's current market difficulties) Rosso is hopeful a larger bid from another suitor will come in quickly so a deal can be closed as soon as next month. Who is that likely to be? At this stage the number one contender is thought to be Vodafone, the only telco not active in the home broadband market despite years of rumours.

Of course buying Tiscali is hardly going to compete with O2 buying ADSL2+ king Be Unlimited (especially considering these figures) but I guess it's a start - especially when you're desperate...

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Tiscali

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