If Fleet Street rumors prove correct, BSkyB is headed for a four-way battle for Pipex Communications, a major player among the United Kingdom’s telecoms market. With nearly 1.1 million fixed line customers, almost 600,000 broadband customers, a WiMAX licence and a Web-hosting operation, Pipex is an attractive acquisition target. Bids were expected last week from BT, Carphone Warehouse, BSkyB and Virgin ahead of a deadline set by UBS to consider Pipex’s strategic options, including possible sale.

Interest seemed keen. Daniel Kervan, a UBS analyst, said in a research note that "Virgin could see Pipex as a way to accelerate its off-net strategy. The price that Sky is prepared to offer is likely to reflect its ability to acquire customers organically at a relatively limited cost given its attractive pricing and triple play."