Tiscali Has Short-List of Bidders, Carphone Excluded

MILAN -(Dow Jones)- Italian broadband operator Tiscali said Monday that it has received non-binding offers from "leading industrial operators" and has completed a short-list of potential bidders.

In a statement, Sardinia-based Tiscali said Chief Executive Mario Rosso will continue negotiations with those suitors that best meet the target of creating value for all shareholders.

Four U.K. companies - British Sky Broadcasting Group, BT Group, Carphone Warehouse and Vodafone - and Italy's Fastweb have reportedly expressed an interest in Tiscali's Italian or U.K. assets.

A person familiar with the situation told Dow Jones Newswires that Carphone has been excluded from the bidders' short-list because its offer didn't mirror Tiscali's value.

Since Tiscali announced it was effectively up for sale at the end of March, its share price has jumped more than 30%, bringing its market capitalization to EUR1.5 billion.

On Monday, Tiscali's share closed up 2.2% at EUR2.49, ahead of the company's statement.

Tiscali said Monday its first-quarter net loss narrowed 12% to EUR37.5 million from a EUR42.5 million loss a year earlier, boosted by an acceleration in customer growth.

Tiscali said first-quarter revenue was up 43% at EUR276.4 million from EUR193.2 million a year earlier.

Despite being repeatedly tipped as a takeover target, the group has grown in the U.K. during the past few years through acquisitions. In August 2006, Tiscali acquired TV and video-on-demand firm Home Choice for around GBP50 million, and in July it reached a deal to buy the broadband and voice communications units of Pipex Communications PLC for GBP210 million.

-By Giada Zampano, Dow Jones Newswires; 39-025-821-9907; giada.zampano@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 12th May 2008