22 September 2008
Carphone Warehouse has signalled its interest in acquiring the British operations of Tiscali in a bid to boost its broadband business. The company warned in July that the number of new customers signing up for its broadband deals would be lower than expected due to the economic slowdown. Purchasing part of Tiscali would give it access to a large customer base and allow it to compete against BT as one of the UK's biggest broadband providers. According to reports, Carphone Warehouse has tabled an offer of just under £450 million for the rival Italian company, which has been up for sale since the beginning of this year. Neither Carphone Warehouse nor Tiscali have commented on the speculation. Bloomberg reports that Carphone Warehouse is one of several companies demoted from the FTSE 100 index following a 44% slump in its share prices this year. The company has said it remains cautious about its financial outlook.