BSkyB and Tiscali talks stall over price
With the 'For Sale' sign up at Tiscali since April, the news will come as a blow that talks between Tiscali and BSkyB, the last remaining bidder to buy the UK arm of the company, have stalled over the price for the business. Throughout the process, various bidders have come forward offering different amounts, but all have been turned down thus far. With Sky as the sole interested party at present, and in the current financial times, it is no wonder that they are being careful about how much money they put forward, to prop themselves into the third largest broadband provider in the UK.
For those who've followed the process thus far, it may seem like Tiscali have shot themselves in the foot as they turned down better offers whilst trying to seek around £600m for the business. Carphone Warehouse for one came forward with £550m but were turned down by Tiscali. To rub it in, they later offered £450m, but again were turned away. Sky were thought to be offering close to £450m when talks started, although if this is deemed to be too high, will Tiscali be forced to take a poor deal or will they hold out until things look a bit rosier in the economy?