Sky is reportedly in exclusive talks to acquire Tiscali's UK business. Sky has tabled an offer of £450m (E571m) for the UK business after last rival Carphone Warehouse pulled out of the auction
The acquisition would be a major boost to Sky's broadband services, making it the third largest provider after BT and Virgin Media. The British operations of Italian telecoms company Tiscali have been up for sale since a strategic review of the company in February.
The auction, which began in April, has been delayed by disagreements over Tiscali's valuation and other bidders, reportedly BT and Vodafone, have pulled out of the drawn-out process.