Tiscali buyout looks uncertain after shares suspended

Tiscali appear to be the first victims of the recession in the British Broadband Big 6, after its shares have been suspended on the Italian stock market after taking a 50 per cent tumble this morning after it was revealed that the group, which collectively owes banks €500 million, failed to meet a debt repayment.

Tiscali is currently the fifth largest broadband provider in the UK, with a subscriber base of around 1.7 million. Tiscali, who listed looking for a buyer for their UK consumer services as a top priority in 2008, were looking for at least £600 million. Among those interested in a buyout included TalkTalk/AOL owners Carphone Warehouse and Sky – the latter stumped up £450 million for Tiscali’s UK arm, but talks broke down, becoming “impossible to proceed,” according to Tiscali.

This means that Tiscali will be coming to the banks of Europe cap in hand, at a time when fiscal security is shaky to say the least.

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