Freeserve talks 'back on'

The UK internet service provider, Freeserve, has reportedly once again attracted the attention of Germany's T-Online.

It is reported that Freeserve's owner, electrical retailer Dixons, is back in talks with the German group, owned by telecoms group Deutsche Telekom.

If the reports, in the UK's Observer newspaper, are accurate, it could lead to the resurrection of a deal which collapsed a month ago.

A Freeserve spokesman said on Sunday that his company had maintained a dialogue with the German group despite the failure to conclude a deal in June.

It is understood that the two sides are now looking at a variety of options. The spokesman said no takeover was imminent.

Management styles

Dixons has been trying to sell its stake in Freeserve for months, during which time the internet service provider's stock market value has fallen sharply.

It had been close to clinching a near-£6bn sale to the German group last month.

But that deal collapsed because of concern at both the price tag and reported conflicting management styles.

Since then Freeserve's market value has fallen to £3.5bn.