Pipex plays down sale speculation

Pipex could soon be up for grabs as the company has enlisted the help of financial adviser UBS to help it consider its options, including the possibility of selling off all or part of the business.

Some big players are believed to be interested in snapping up a piece of Pipex's business if it goes on the market, including BSkyB, BT, Carphone Warehouse and other mobile operators, according to a report in the Daily Telegraph.

But Pipex has remained fairly tight-lipped since the news broke of its intentions this week.

"Pipex confirms that it has appointed UBS to investigate a number of strategic options, which could include a sale of the company," it said in a statement.

"This process is at a very early stage and there can be no certainty that a transaction will result. A further announcement will be made in due course."

When such an announcement will be made remains unclear as a spokesman for Pipex was unable to provide any clarity as to when users can expect an update on the company's destiny.

Pipex's decision to consider its options has come somewhat out of the blue.

Last year, the company reported a healthy bank balance and demonstrated its affluence with a spending spree during which it acquired a number of companies including Bulldog's residential and small business broadband division and Toucan's UK arm for £12 million and £24 million respectively.

At the time of the acquisition, the company's chairman Peter Dubens was very upbeat about the future.

"With the acquisitions of Homecall, and today Bulldog's broadband customers, and an agreement to buy Toucan, we have gained even more scale in the broadband and voice market, and, as an enlarged group, Pipex now has the size and credibility to evolve as a leading player in the broader UK telecoms marketplace," he said.

"I am confident that we can continue this momentum throughout the rest of 2006 and beyond."

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