TalkTalk sees lower purchase price for Tiscali’s UK arm

4 Aug 2010

British fixed line and broadband provider TalkTalk has announced that it has come to an agreement with Italy’s Tiscali regarding the final price to be paid for the latter’s UK unit. According to the Wall Street Journal, more than a year after the two companies agreed the sale in May 2009, it has been revealed that the original GBP236 million (USD355 million) has lessened following a GBP21 million reduction in consideration of changes in customer numbers that took place during negotiations between TalkTalk and Tiscali, partially offset by a GBP6 million working capital adjustment.

According to TeleGeography’s GlobalComms Database, the TalkTalk/Tiscali deal secured approval from European Union (EU) antitrust authorities in June 2009, with the European Commission (EC) stating that the two operators had overlaps in the provision of retail and wholesale internet access and claiming that the deal would not impede competition. The purchase was completed in July 2009, and in January 2010 TalkTalk announced that it had completed the migration of all Tiscali customers to its own ISP, also confirming that the Tiscali brand would cease to be used in the UK as of that date.

United Kingdom, TalkTalk (incl. FibreNation), Tiscali, Tiscali UK