Sky is reported to have made a £450m bid for Tiscali's operations in the UK.

According to The Sunday Times - which, like 39% of Sky, is owned by News Corp - Sky has entered exclusive talks with Tiscali after rival bidder Carphone Warehouse exited the process.

An acquisition of Tiscali would add 1.84m subscribers to Sky Broadband's 1.79m, taking Sky to the same league in the broadband space as Virgin Media, which has 3.6m cable broadband customers and an additional 272,000 DSL subscribers. Tiscali is also in the process of building out an IPTV system and aims to have 200,000 TV subscribers by the end of the year.

Sky has yet to comment on the paper's report.