Major UK broadband supplier’s rescue deal falters as watchdog ‘triggers emergency talks’

A MAJOR BROADBAND supplier has seen its rescue deal falter. Talks about an acquisition had been ongoing since August, but now appear to have been abandoned. The broadband giant has been forced to seek a buyer for the division due to losses and a growing debt pile Credit: Alamy TalkTalk is no longer in exclusive talks with Octopus Investments over the sale of its PXC division, Sky News has reported. It comes just four days after the pair issued a joint statement sharing they were “optimistic of delivering the proposed transaction and will update stakeholders with further news in due course”. Sign up for the Money newsletter Thank you! However, they did caution at the time there can be “no certainty of any transaction completing”. There is no deadline to find a buyer, with a number of suitors including private equity firm Epiris, said to be keen to snap it up. The broadband giant has been forced to seek a buyer for the division due to losses and a growing debt pile. But the Telegraph reported that uncertainty over the deal “triggered emergency” talks at Ofcom. The outlet reported that BT or another large firm could have to take on TalkTalk’s retail customers if it were to collapse. An Ofcom spokesman told the paper: “We are aware of reports regarding ongoing commercial negotiations and, as you’d expect, are closely monitoring developments.” Most read in Money It comes just days after it was reported that the sale of TalkTalk’s consumer arm to Opus also hit the skids. Now, the news site has suggested that both the firm’s founder and largest shareholder are also exploring a move to take control of its consumer arm. Sky News said last week that “Ares Management would assume long-term ownership of the business, with Sir Charles Dunstone playing a largely advisory role.” Comment now