TalkTalk ‘pursuing sales’ amid administration threat

TalkTalk remains in “advanced discussions” with potential buyers of its consumer and broadband businesses as it races to secure its future.

Britain’s fourth-largest broadband provider says it is in the final stages of agreeing sales for its two divisions as speculation swirls it could be heading for administration.

It said: “The company expects to conclude both transactions imminently.”

The debt-laden telecoms firm reportedly employs around 900 staff and has about 1.5 million customers.

It is understood the group is still progressing talks with rival Opus Broadband over a possible deal for the consumer arm of TalkTalk, as well as discussions with Octopus Investments for its wholesale business PXC reportedly at around the £300 million mark.

But a period of exclusivity with both bidders ended in recent days amid reports Opus had halved its offer for the consumer arm to £100 million, leading to worries that sales could fall apart and see the company collapse into administration.

The Government has been in contact with TalkTalk, given its role as a major broadband provider to households and businesses, as well as telecoms services to the Ministry of Defence.

It is believed national security networks are partly dependent on TalkTalk’s PXC systems, though the Ministry of Defence is said to have contingencies in place to ensure it is not reliant on one provider.

TalkTalk was founded by Sir Charles Dunstone in 2003 as a subsidiary to Carphone Warehouse.

Its shareholders, including chair Sir Charles and lender Ares Management, are also thought to be involved in discussions and could pump in more cash should deals with Opus and Octopus fall apart.

The sales are complicated by the fact the consumer business is dependent on infrastructure controlled by PXC.

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