Carphone Warehouse Considers Tiscali Buy

Even though it backed out a year ago, the Carphone Warehouse is once again considering buying out Tiscali, the debt laden telecoms company that operates in both the UK and Italy.

Tiscali had been in talks with BSkyB, but negotiations broke down over price, leaving the Carphone Warehouse with an opportunity to reconsider a buyout plan.

Without a buyer, there is a real danger that Tiscali will enter administration, which would mean their customer base being sold to a different provider at a cut price.

In February the company’s shares were suspended as it struggled to repay the interest due on its £508 million debt pile.

The Carphone Warehouse refused to give a statement on the supposed takeover plan, saying, “We never comment on speculation.” Tiscali also refused to comment on the matter.

Only time will tell whether Tiscali can find a buyer and that leaves its customers in a fairly tough position. Should they stay and be sold on to a different provider? Or should they consider switching now?