Tiscali has confirmed it is suing BT for defamation and malicious falsehood following a marketing campaign that encouraged Tiscali customers to defect.

BT recently sent out thousands of letters to Tiscali broadband users, suggesting that their internet provision may be in doubt.

Each letter invited customers to switch to an alternative provider and had the headline 'Tiscali chief plots sell-off'.

This was a reference to Tiscali's apparent indecision over its future. The internet service provider (ISP) has been looking for a buyer since Mario Rosso took over as chief executive officer in February.

In June, the Financial Times reported that Vodafone had decided against bidding for Tiscali. Earlier this month, the ISP was forced to deny reports that it would be sold off by mid-August.

A spokesperson for Tiscali said: "The next stage is for us to file a further court document and we will then learn the terms on which BT intends to defend the claim, if at all."

BT insists its marketing campaign was legitimate and reasonable.


Thursday, 24th July 2008

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