Internet provider Tiscali said talks with BSkyB over the sale of its UK assets have ended. Tiscali said it was “de facto impossible” to proceed with the discussions because of the impact of the continuing economic downturn.
As a result, Tiscali said it would miss an interest payment on its debt as it seeks to restructure its obligations. Shares in the Italian firm declined 40% in Milan on the news before trading was subsequently suspended.
Tiscali has about E500m of outstanding debt. Its next interest payments, for E11m are due on 11 March and 13 March. The company has asked for its interest payments to be suspended for a period while it restructures its debt.