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| Version 1 | Version 2 |
|---|---|
| Carphone to purchase Tiscali UK | Carphone to purchase Tiscali UK |
| (about 6 hours later) | |
| Carphone Warehouse is to buy the UK assets of Italian internet service provider Tiscali for £236m. | Carphone Warehouse is to buy the UK assets of Italian internet service provider Tiscali for £236m. |
| The deal, which is expected to be completed by the end of June, will create the UK's largest home broadband provider with 4.25m subscribers. | The deal, which is expected to be completed by the end of June, will create the UK's largest home broadband provider with 4.25m subscribers. |
| Tiscali had previously been in talks with BSkyB, but negotiations broke down earlier this year. | Tiscali had previously been in talks with BSkyB, but negotiations broke down earlier this year. |
| Carphone Warehouse currently provides broadband services under its TalkTalk brand and via AOL Broadband. | |
| Carphone chief executive Charles Dunstone said that the company would eventually just have a single brand. | Carphone chief executive Charles Dunstone said that the company would eventually just have a single brand. |
| But he added that Tiscali e-mail addresses would survive. | But he added that Tiscali e-mail addresses would survive. |
| "We know the business well and the fit with TalkTalk is perfect," Mr Dunstone said. | "We know the business well and the fit with TalkTalk is perfect," Mr Dunstone said. |
| Completion of the deal will give TalkTalk more than 25% of the residential broadband market. | Completion of the deal will give TalkTalk more than 25% of the residential broadband market. |
| Carphone expects it to boost its earnings by 10% in the next year. | Carphone expects it to boost its earnings by 10% in the next year. |
| Shares in Carphone Warehouse were up 3.8% by midmorning. | Shares in Carphone Warehouse were up 3.8% by midmorning. |
| Tiscali shares, which were earlier suspended in Italy pending the statement, were up 8%. | Tiscali shares, which were earlier suspended in Italy pending the statement, were up 8%. |
| 'Competitive UK market' | 'Competitive UK market' |
| Tiscali has struggled with its debt, which stands at about 600m euros ($805m;£535m). | Tiscali has struggled with its debt, which stands at about 600m euros ($805m;£535m). |
| It is the fifth largest internet service provider in the UK, with 1.45m broadband customers. | It is the fifth largest internet service provider in the UK, with 1.45m broadband customers. |
| "The transaction should be considered in light of the strong consolidating trend in the highly competitive UK market, evaluating Tiscali UK activities as a whole, thus preserving the value of its industrial assets and know-how within the Carphone Warehouse Group," said Mario Rosso, chief executive of Tiscali. | "The transaction should be considered in light of the strong consolidating trend in the highly competitive UK market, evaluating Tiscali UK activities as a whole, thus preserving the value of its industrial assets and know-how within the Carphone Warehouse Group," said Mario Rosso, chief executive of Tiscali. |
| Carphone announced plans last month to separate its mobile phone business from its TalkTalk fixed line and broadband operations. | Carphone announced plans last month to separate its mobile phone business from its TalkTalk fixed line and broadband operations. |
| It operates 2,400 mobile phone shops across Europe in a joint venture with the US retailer Best Buy. | It operates 2,400 mobile phone shops across Europe in a joint venture with the US retailer Best Buy. |