Acquisitive business communications and networking provider Daisy Group has been holding talks with US cable operator Liberty Global to explore the possibility of a sale, according to reports.
Liberty Global came to prominence in the UK in February 2013, when it bought Virgin Media for £15bn, and it is understood that the signing of a deal for Daisy to provide services for Virgin Media earlier this year may have acted as the catalyst for the secretive negotiations.
Their cover was blown, however, when talks were apparently discontinued over a difference in opinion over the potential £500m purchase price.
Deal-watchers have speculated that Daisy may now come under pressure to come clean over the talks, given the likely impact on its share price.
If a deal was to go ahead it is probable that Daisy would be integrated into Liberty’s Global Business Services division.
In the first half of its current financial year, Daisy’s sales fell by 4% and its operating losses widened to over £10m, mostly due to declining fixed line and voice sales.
However, its two channel-centric units, Daisy Wholesale and Daisy Distribution, have been performing well recently, and Daisy has been attempting to expand the range of services it can offer partners following its October 2013 acquisition of Indecs.