Vodafone disconnects from Tiscali bid

Vodafone has pulled out of the auction for Tiscali, the Milan-based internet company that has fixed line broadband operations in the UK and Italy. According to the Financial Times, Tiscali has received at least one offer this week but people close to the auction said Vodafone, the world’s largest mobile phone operator by revenue, will not be making a formal proposal. Vodafone and Tiscali declined to comment. The remaining four companies believed to be interested are British Sky Broadcasting (BSkyB) and Carphone Warehouse of the UK; Wind, Italy’s third biggest mobile operator; and Swisscom, Switzerland’s leading telco. Vodafone was the only company interested in buying both Tiscali’s UK and Italian broadband operations, the other four eyeing either its UK or Italian units. People close to the auction said Vodafone had pulled out because of a disagreement over Tiscali’s valuation. They added that Vodafone might rejoin if Tiscali did not reach agreement with one of the four remaining interested companies.