Based on the recent reports, Tiscali, the Italy based UK broadband provider is likely to buy the home broadband service of Pipex. The deal is likely to be announced in a month after both the companies agree on takeover target.

However, this deal will not include WiMax service of Pipex and Pipex is keen on becoming a key player in business broadband as it has been facing a fierce of competition among home broadband providers in UK. Tiscali too has been reeling under by a few problems, most notably, the recent email-related problem faced by its customers. It is considered that both companies lack new marketing strategies and investments to lure the home broadband users in UK.

Tiscali has a customer base of nearly three times more than Pipex. Pipex has managed to cross half a million mark during the last quarter while Tiscali is reported to have 1.6 million broadband customers. Tiscali's bundled lines are wide-spread in UK and it has been offering its services through 400 exchanges that it has unbundled in the recent years. By contrast, Pipex.has unbundled just 100 exchanges. However, Pipex can access the unbundled exchanges of Tiscali, if both the companies reach a deal.

It seems some of Pipex staff are disappointed over the recent developments. However, this factor is less likely to disrupt the take over procedure.