Carphone back as potential Tiscali buyer
Tiscali shares rose by 19.7% today after it emerged that talks have recommenced between Tiscali and Carphone Warehouse over the sale of Tiscali's UK arm. It's thought that the banks to which it owes around £450-500m may be pushing for a sale to proceed quickly, however this could force the price even lower as potential buyers hold off in an attempt to get a bargain.
Carphone Warehouse originally offered £550m for Tiscali last year but was excluded from the first round of bidding as the company were hoping to raise more funds. BSkyB walked away from the bargaining table last month when the price was estimated at around £300m. The question now is how low will the price go, and will such a low price invite fresh bids from other parties that could induce a new bidding war?