ROME -(Dow Jones)- Shares of Tiscali slid for a second day on uncertainty over whether the Italian telecom company would be able to lure an attractive suitor in an auction scheduled to finish at the end of June.
Front-runner Vodafone has dropped out, the Financial Times reported on its Web site Thursday, echoing reports in the Italian press.
Vodadone said it has no comment.
At 0750 GMT, Tiscali shares were trading down 5.3% at EUR2.12. The stock closed down 7.2% Wednesday.
Vodafone's decision to pull out of the Tiscali auction could be slightly positive for Vodafone, said Damien Chew at ING.
"If the broadband market is slowing, as some people are saying, then it could be slightly postive for Vodafone," Chew said.
Tiscali, for its part, said Thursday that an auction to sell the company is still under way, and declined to comment on press reports that Vodafone has dropped out.
A spokeswoman for Tiscali said the sale will finish at the end of June, as previously announced.
"No decision on the sale has been taken," she said.
-By Jennifer Clark, Dow Jones Newswires; 39 06 4227 2073; jennifer.clark@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 19th June 2008
Posted to: www.cellular-news.com/story/31905.php