TalkTalk in ‘final stages’ of deals to sell divisions amid administration threat

TalkTalk has said it remains in “advanced discussions” with potential buyers of its consumer and broadband businesses as the troubled telecoms firm races to secure its future.

Britain’s fourth-largest broadband provider said it was in the final stages of agreeing sales for its two divisions as speculation swirls that it could be heading for administration if it cannot reach agreement on deals.

It said: “The company is now in the final stages of its sales process for the business and expects to conclude both transactions imminently.”

It is understood the group is still progressing talks with rival Opus Broadband over a possible deal for the consumer arm TalkTalk thought to be worth £100 million, as well as discussions with Octopus Investments for its wholesale business PXC reportedly at around the £300 million mark.

But a period of exclusivity with both bidders ended in recent days, leading to worries that sales could fall apart and see the company collapse into administration.

The Government has been in contact with TalkTalk over the sales, given its role as a major broadband provider to households and businesses, as well as telecoms services to the Ministry of Defence.

It is believed that national security networks are partly dependent on TalkTalk systems.