Overview
- TalkTalk says it is in ‘final-stage’ talks to sell its consumer arm and wholesale business, but reporting on Friday showed key bidders have weakened or withdrawn, sharply raising the chance administrators could be appointed within days.
- Industry reports say Octopus has left talks over the PXC wholesale arm and Opus Broadband has reduced its consumer offer to about £100 million, amounts that are reported to fall short of what is needed to stabilise the group.
- Ofcom and ministers are closely monitoring the situation and have discussed contingency steps, including a possible transfer of customers to BT as a supplier of last resort, although it is unclear whether BT would accept the business.
- TalkTalk’s heavy debt load, put at roughly £1.2 billion, and about £350 million of emergency injections from shareholders and lenders over the last two years mean further cash from owner Sir Charles Dunstone or Ares Management may be needed to avoid insolvency.
- The consumer and PXC businesses are operationally linked, which complicates split sales and raises risks for around 1.5 million customers and vulnerable users of services such as dialysis and personal alarms if a buyer is not found.