BSkyB, BT favourites to buy AOL UK unit

12 Jun 2006

Satellite broadcaster BSkyB and telecoms firm BT Group are favourites to buy AOL's Internet unit in the UK, which is up for sale for 1 billion pounds, the Sunday Times reported.

AOL, which is owned by Time Warner, has appointed Citigroup to review strategic options for the UK business, and potential bidders have until June 12 to indicate their interest, the newspaper said without citing sources.

AOL hopes to fetch 1 billion pounds for the unit but is unlikely to achieve the asking price, the report said, quoting an executive involved in weighing up an offer.

Carphone Warehouse said last week it was not interested in buying the business.

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