Tiscali in Turmoil?

9:00 AM -- European broadband service provider Tiscali SpA (Milan: TIS) issued a statement early Monday to counter claims that its CEO, Tommaso Pompei, is to quit. Italian newspaper Il Sole 24 Ore reported Sunday that Pompei is set to resign at a board meeting Wednesday amid growing speculation that Tiscali is the subject of a takeover bid.

Tiscali stated: "With reference to what has been reported by the press during the weekend concerning a possible management change, Tiscali informs that so far no decision has been taken. If any development occurs, Tiscali will timely inform the market."

According to Il Sole 24 Ore, among the potential bidders for Tiscali are BT Group plc (NYSE: BT; London: BTA), Fastweb SpA (Milan: FWB), Sky , and Vodafone Group plc (NYSE: VOD).

Tiscali has DSL operations in Italy and the U.K. (where it offers IPTV services) and a pan-European wholesale operation. In the first nine months of 2007 the operator generated revenues of €614.3 million (US$910 million) and substantially reduced its net loss to €6.7 million ($10 million). (See Tiscali Cuts Loss and Tiscali Unveils Biz Plan.)

Tiscali’s share price is up nearly 1 percent today at €1.84 on the Milan exchange.

— Ray Le Maistre, International News Editor, Light Reading

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