UK, Italy separation likely for Tiscali

Tiscali's British and Italian operations are likely to be sold separately after no satisfactory offers were received for the entire firm.

Vodafone made the highest offer in the telco's bidding round but it was rejected, according to Italian press reports. Sky and Italian firms Fastweb and Wind are also said to have bid.

The firm is now looking to stimulate interest with a presentation to potential buyers next week.

Tiscali has previously expressed a preference for remaining whole but its shareholders now believe there is more value in separation. The company's UK operations - including its TV-over-DSL service - are said to be its most valuable.

Other potential bidders are said to include BT and Telecom Italia while rumours have suggested Virgin Media also has an interest.