Carphone Warehouse preparing for Tiscali bid

Carphone Warehouse has sprung up as the best potential suitor in the running for a Tiscali takeover, according to a report in Times Online. A source confirmed to the newspaper: "Carphone could be interested in Tiscali's UK arm "at the right price."' Following the announcement that Tiscali had taken on the support of JPMorgan Chase and Intesa Sanpaolo's Banca IMI to evaluate strategic options Tiscali's shares rose by 13 per cent.

Other ISPs rumoured to be interested in Tiscali's British unit included BT Group and Sky. However, a source from BT has recently suggested that a bid was unlikely. If the sale goes ahead market sources suggests that then British business could be worth between £550 million to £650 million, although if the price was too high Carphone Warehouse would be unlikely to place a bid. Source: Times Online