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Carphone Warehouse buys Tiscali UK

Carphone Warehouse has bought Tiscali's UK businesses for £236m after lengthy on-again off-again negotiations.

The cash deal, announced this morning, will see Talk Talk and Tiscali's networks integrated within two years. Service will not be interrupted by the deal, and for now Tiscali customer service remains the point of contact for subscribers.

Tiscali UK CEO Mary Turner said: "It's good news for our customers who will increasingly benefit from a group that has consistently championed best value and award-winning customer service."

The size of Tiscali's customer base has fallen in the last two quarters as customers seek better customer service.

The firm's Italian parent group put it up for sale more than a year ago. Talks with Sky and Vodafone collapsed as bosses reportedly sought about £600m for Tiscali UK's 1.76 million subscribers (including about 300,000 on dial-up).

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