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Tiscali shares crash after Sky sale fails
Nick Goodway9 Mar 2009
Fears were growing today over the future of Tiscali, the internet company with some 1.8 million British subscribers.
Shares in the company crashed 44%, and were suspended on the Milan Bourse at just 16.1 euro cents.
The collapse in the share price followed the failure of efforts to sell Tiscali's UK business to BSkyB late on Friday. Sky saw off Carphone Warehouse last year in the auction to buy the fifth-largest internet service provider for a rumoured £450 million. But the values of internet companies have tumbled, and in December Sky cut its offer to £350 million.
Now Tiscali, including its Italian and British operations, is valued at less than €100 million (£91 million) while it has debts of €500 million.
It is due to make interest payments of €11 million this week but has asked its lenders to suspend their demands.
