Pipex keeps schtum on sale

ISP Pipex, which has been the subject of a number of takeover rumours in the past few months, has issued its financial results for 2006.

The company acknowledged the speculation that has been in the press recently and promised a further announcement "in due course".

Pipex, which has around 600,000 customers in the UK, has allegedly attracted the attention of Virgin Media, BT and the Carphone Warehouse as a takeover target.

It announced last month that it had appointed investment bank UBS to investigate "strategic options" for the company, which may involve it being sold, it said.

"The Board notes that there has been a large volume of highly speculative press coverage, and would like to reassure shareholders that the strategic review, which is expected to be completed during the summer, continues to the Board’s satisfaction.

"Pipex and UBS continue to explore the various options available to the Company and a further announcement will be made in due course," Peter Dubens, the Pipex chairman said in a statement.

The statement is likely to do little to end speculation, with some in the industry believing that interest from potential buyers is cooling rapidly. However, with such a large customer base, it could easily prove to be a kingmaker in the battle for dominance of the UK broadband market.

Pipex also announced that it would be launching commercial WiMax services in the UK this year. There are currently trials underway in Milton Keynes and Warwick and it will be rolled out in Manchester before the end of the year.

WiMax is a large-scale Wi-Fi network that encompasses a large area, providing wireless internet access.

http://www.pipex.co.uk/

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