TalkTalk confirms £1.1bn takeover bid from shareholder

TalkTalk has received a takeover offer from one of its shareholders, Toscafund Asset Management (TAM).

The investment manager already owns 30.5 percent of the internet service provider (ISP), but has now offered 97 pence per share, making the value of the takeover offer approximately £1.1 billion.

TalkTalk is currently the fourth largest ISP in the UK by subscriber numbers (4.2 million broadband customers), behind the likes of BT (which includes EE and Plusnet), Sky Broadband and Virgin Media.

It is understood the deal will need the approval from TalkTalk founder Charles Dunstone, who still owns 29.7 percent of the company.

“The proposal contains a number of pre-conditions to announcing any firm intention to make an offer, including, that TAM receives an irrevocable undertaking from Charles Dunstone in support of such offer including an election for any unlisted share alternative in respect of his entire holding of ordinary shares in the company,” read a statement.

Dunstone reportedly rejected a bigger takeover offer from TAM last year, but the telecom market is facing challenging times after Virgin Media (owned by Liberty Global) and O2 (owned by Telefonica), agreed in May this year to combine their operations in the UK.

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