Broadband, phone and pay TV provider Sky could make a bid for industry rival TalkTalk, one City analyst has suggested.
Liberum Capital’s Lawrence Sugarman said that in the wake of BT's Premier League football rights deal, Sky may be keen to extend its broadband portfolio.
Speaking to the London Evening Standard, the analyst said an acquisition "could be an ideal way to launch a response" to this new challenge.
“We believe Sky is keen to build on its broadband position," Mr Sugarman stated.
However, he urged TalkTalk shareholders to keep hold of their equity in the firm.
Mr Sugarman noted that the firm's share value has risen by 40 per cent since May 2012, reaching an all-time high earlier this week.
Commenting on the analyst's claims, ISPreview.co.uk Editor Mark Jackson warned that talk of an acquisition "should be taken with a huge pinch of salt".
"No official offer is known to have been made and rumours like this aren’t uncommon," he told the website.