17 October 2005
Satellite firm BSkyB is believed to be considering making a move on a broadband telecoms firm.
Easynet provides a range of broadband services to internet service providers (ISPs) through a network of its own equipment in 250 BT exchanges, known as LLU-enabled exchanges.
BSkyB has been expected to make a move into the broadband sector, as it looks to add new services to its Sky+ digital television package and broadcast some of its programmes via the internet.
Shares in Easynet rose as speculation about a possible deal with BSkyB increased. The company has confirmed that it has received a bid, but has not revealed from whom.
In a statement to the stock exchange, Easynet said: "The board can confirm that it has received an approach that may or may not lead to a formal offer being made for the company."
BSkyB announced plans last week to ramp up its acquisition strategies after raising £1 billion from a bonds issue. Analysts have priced any deal for Easynet at around £150 million, or 130p a share.
Sky has refused to comment on the rumours, but a spokesman told the BBC: "Sky intends to continue to set the pace of change in media content and distribution."
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