BT eyeing Tiscali's UK business - reports

The UK’s incumbent, BT, is looking to buy the UK operations of Tiscali SpA according to reports in the Italian daily, Il Sole 24 Ore, Thursday.

Citing financial sources, the newspaper claims that BT has already begun informal talks with Merrill Lynch, which, the report says, is handling the deal.

According to Tiscali, the company’s UK business – estimated to be worth around Eur700m (£461m) – is not for sale but the report suggests that there may be some flexibility if the right offer were made. The newspaper quotes one banker who suggests that a sale could prompt Tiscali to propose a merger with Italy’s second largest ISP, Fastweb.

BT said it does not comment on rumour and speculation.