Page last updated at 11:26 GMT, Monday, 9 March 2009

Tiscali sale talks with BSkyB end

Tiscali shares were suspended in Milan after a 40% drop

Internet provider Tiscali said talks with broadcast giant BSkyB over the sale of its UK assets have ended.

Tiscali said it was "de facto impossible" to proceed with the discussions because of the impact of the continuing economic downturn.

As a result, Tiscali said it would miss an interest payment on its debt as it seeks to restructure its obligations.

Shares in the Italian firm declined 40% in Milan on the news before trading was subsequently suspended.

Tiscali put itself up for sale last year and began talks over the sale of "certain UK assets" to BSkyB in November.

Payments due

"Due to the worsening of the market environment in which the potential buyer also operates, the board of directors has acknowledged that it is de facto impossible to proceed," Tiscali said.

Tiscali has about 500m euros ($629m; 453m) of outstanding debt. Its next interest payments, for 11m euros, are due on 11 March and 13 March.

The company has asked for its interest payments to be suspended for a period while it restructures its debt.

Print Sponsor

Advertising slump hits News Corp
05 Feb 09 |  Business
Tiscali in sale talks with BSkyB
03 Nov 08 |  Business
Tiscali accuses BT of defamation
22 Jul 08 |  Technology
Tiscali buys Pipex broadband unit
13 Jul 07 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific