BSkyB is close to clinching a deal to acquire telecoms provider Easynet, according to reports.

The company is expected to announce the takeover, worth around £150 million, later this week.

Acquiring Easynet would allow Sky to take on the cable operators by launching a "triple play" offering of pay TV, broadband and telephone services. The move would also provide the necessary medium to offer up new video-on-demand services.

Shares in Easynet rose 22% to 117.5p by close of play on Monday.