Friday, September 24th 2010
Bundle provider TalkTalk is reportedly being eyed by a number of telecoms firms.
TalkTalk could be an attractive proposition for a takeover by one of the other main players in the UK telecoms market, industry analysts have claimed.
Mark James of Liberum Capital told Dow Jones Newswires that mobile network operators such as Vodafone and O2, plus T-Mobile and Orange through their parent company Everything Everywhere, could be keen to acquire the bundle provider.
"We expect TalkTalk to be bought longer term," he remarked.
Meanwhile, a London-based investment banker said TalkTalk is likely to want to seek out a richer backer to enable it to keep pace with the expansion of its rivals.
"If you think that the UK broadband market will eventually distil down to three - BSkyB, Virgin Media and BT - funding will at some point become an issue," the source commented.
Earlier this month, Mr James told the Guardian that Vodafone could be particularly keen to purchase the broadband and home phone provider to bolster its fixed communications sales.
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