TalkTalk plots break-up of telecoms and broadband group

The company founded by Sir Charles Dunstone has convened a beauty parade of investment banks to oversee a strategic review and sale of its two divisions, Sky News learns.

Mark Kleinman

City editor

Friday 20 June 2025 11:16, UK

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TalkTalk, the telecoms and broadband group founded by Sir Charles Dunstone, is preparing to hire City advisers to oversee a break-up of the company.

Sky News has learnt investment banks were asked to pitch this week for a mandate to oversee a potential sale of TalkTalk's two remaining businesses: its consumer arm and PXC, its wholesale and network division.

City sources said on Friday that Barclays and Morgan Stanley were among the banks in the frame to oversee the strategic review, which has been triggered by separate unsolicited approaches for both parts of the group.

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TalkTalk, which has been grappling with a strained balance sheet for some time, is also in talks to raise a further £100m from a combination of existing investors and asset sales, according to people close to the situation.

The company has recently drafted in advisers from Alvarez & Marsal, the professional services firm, to assist its finance function with liquidity management, the people added.

TalkTalk has more than 3m broadband customers, with parts of its customer base expected to be sold as part of its efforts to raise money.

It completed a £1.2bn refinancing late last year, but has been under pressure from bondholders to raise additional capital.

The likely proceeds from the sales of its two divisions were unclear on Friday.

Earlier this month, the Financial Times reported that BT's broadband infrastructure arm, Openreach, could block TalkTalk from adding new customers to its network in an escalating dispute over payments owed to BT Group.

A TalkTalk spokesman declined to comment.

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