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Tiscali Takeover Looms

1:40 PM -- It looks like the Tiscali SpA takeover saga is drawing to a close. (See Tiscali Seeks Buyer.)

According to Italian newspaper Milano Finanza, Vodafone Group plc (NYSE: VOD) is set to make a bid worth €2.80 ($4.33) per share for Tiscali, which has broadband businesses in Italy and the U.K.

A bid at that price would value Tiscali at €1.61 billion ($2.5 billion).

After leaping 10 percent on Tuesday, the triple play service provider's share price eased a little on Wednesday to close at €2.55.

Tiscali says only that no decision has been taken regarding its sale, and that "negotiations are ongoing with several operators, and the price is part of such negotiations."

Vodafone has been beefing up its fixed broadband assets in the past year, spending €775 million ($1.2 billion) for assets in Spain and Italy, and splashing out a further €474 million ($732 million) to take full ownership of its fixed line subsidiary in Germany. (See VOD Gets Fixed in Italy & Spain and Vodafone Splashes Out on Acquisitions.)

— Ray Le Maistre, International News Editor, Light Reading

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