UK Sales talks cause Tiscali shares to rise

New reports that Carphone Warehouse is still looking to get a deal from buying its assets in Britain, the share value of the Italian Internet service provide Tiscali, which is currently deeply in debt, shot up by 15 percent on Wednesday.

Although there was no clear indication of the price that was being offered by Carphone Warehouse, the third largest supplier of broadband internet services in Britain, it was advise that the negotiations may carry on into the weekend.

A quote in the Times from a source who was familiar will the deal said “Carphone has always been clear that it would be interested in Tiscali’s UK arm at the right price and Tiscali has to take a decision soon.”

Having recently reached a five week high of 0.457 Euros, the shares in the third largest Internet service provider in Italy by market share, Tiscali, rose by 13.6 percent at 0.439 Euros at 1.12 PM (GMT).

A trader said “The stock is up on the expectation of a sale. Will it be the turnaround?”

In one of its statements Tiscali would not name the party involved but said that it was currently in talks for the sale of its assets in Britain. No comment was forthcoming from Carphone Warehouse either, although its share price had risen to 155 pence, which was an increase of 2.48 percent.

Following the talks it had already held regarding its British based assets with British Sky Broadcasting group, the pay-TV and broadband company, a source close to the talks advised last month that talks were underway with Carphone Warehouse to sell Tiscali’s British business.

With long-term debt payments suspended back in March, Tiscali’s debt is currently more than 600 million Euros (£532.1 million).

Italian business newspaper MF said on Wednesday that a probe had been requested by Bourse regulator Consob and that the financial police were currently investigating the recent months of sharp swings in the share price of Tiscali.