Carphone Warehouse has been excluded from the first stage of bidding for Tiscali after its offer of £550m for the UK assets was rejected following a four hour board meeting. Tiscali has a market value of around £1.13 billion. Carphone last week sold a 50% stake in its high street stores to Best Buy to raise funds expected to be used for growth both organically and via acquisition.
With Carphone Warehouse out of the running, potential bidders remaining are thought to include Vodafone Group and BSkyB in the UK as well as Wind, the Italian mobile operator, and Swisscom, the owners of Italian broadband provider Fastweb. Tiscali believe the process is going as planned and that they are in the process of opening their books to six of the companies who made it to the shortlist.
"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 the industrial value of the group."Mario Rosso, (CEO) Tiscali
The sale is hoped to be finalised next month.