Tiscali and Sky talks off as debt problems become critical
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Trading in shares of Italian broadband provider Tiscali have been suspended as the company looks to a solution to its debt crisis.
A sale of Tiscali now looks unlikely at this point in time as it proposes a new business plan that will involve debt restructuring. The company has reportedly asked its banks for a suspension of payments.
Tiscali shares lost 44 percent of their value this morning following the announcement.
Tiscali were originally in exclusive talks with Sky that would see the TV operator pay £450 million, although Sky were then looking to pay less as talks progressed.
Tiscali have in the past had some of the cheapest broadband offers in the UK, but today has restructured pricing on its broadband and telephony products by removing introductory offers.
Tiscali has 1.8 million customers in the UK and is the UK’s fifth largest broadband provider.
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