US suitor targets Kingston buyout

The company started as the phone service for Hull in 1904

US private equity firm Carlyle has emerged as the mystery bidder for the Hull-based telecoms group, Kingston Communcations.

Sources close to the possible deal said talks were at a very early stage.

Kingston, in which Hull City Council has a 30.6% stake, said yesterday that the move could lead to an offer that would have conditions attached.

The offer from Carlyle is believed to be worth up to 85p a share, valuing Kingston at £437m.

Kingston Communications provides phone, internet and digital TV services in the Hull area and to businesses across the UK.

In a statement, Kingston said yesterday: "The approach contains a number of conditions and pre-conditions which are being considered by the board."

It stressed the talks were "conceptual in nature" and that there was no certainty they would lead to any agreement.

The company has 69,000 small shareholders including 40,000 in East Yorkshire.

Kingston is due to announce interim results for the six months to 30 September at the end of this month.