Tiscali mulls German sale to fund UK 'triple play'

Tiscali, the new owner of pioneering video-on-demand (VOD) service HomeChoice, is considering the sale of its German operations in order to fund its new 'triple play' offering in the UK.

Bidders are reported to include Arcor, Vodafone's German's fixed-line operator, Netherlands telco KPR and United Internet of Germany. BT may also have expressed an interest.

Sources claim that banking services group UBS has been appointed to handle the sale.

According to a report in The Business newspaper, a sale by Tiscali of its business in Germany, which is said to be flagging and only contributed about 9% to group sales during 2006's first quarter, would enable Tiscali chief executive Tommaso Pompei to increase investment in the UK.

Tiscali UK is also believed to be in talks with a number of major mobile networks in the hope of adding mobile telephony to its package in order to provide 'quadruple play'.

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