TalkTalk could go into administration 'within days' as rescue sale stalls, Telegraph reports

TalkTalk could go into administration within days after a rescue sale stalled, the Telegraph reports, with officials drawing up contingency plans because some national security networks partly rely on the broadband provider’s systems.

The paper puts TalkTalk’s customer base at 1.5 million, including more than 250,000 vulnerable households — some reliant on home dialysis machines and personal alarms. TalkTalk declined to comment, and the government said it does not comment on speculation.

The crisis deepened after TalkTalk ended exclusive talks with Octopus Investments over the sale of its wholesale division PXC, Sky News reported, just days after the pair said they were “optimistic of delivering the proposed transaction” while cautioning there was “no certainty of any transaction completing”.

Opus Broadband has since returned with a cut-price offer of around £100m for TalkTalk’s consumer business — well under half the original price tag — which sources told Sky News was unlikely to be accepted. If no acceptable bid emerges, the group’s biggest lender, Ares Management, could assume long-term ownership, with founder Sir Charles Dunstone expected to chair the retail operation.

Ofcom is closely monitoring the situation. A spokesman told the Telegraph: “We are aware of reports regarding ongoing commercial negotiations and, as you’d expect, are closely monitoring developments.” The regulator is reported to have held emergency talks over the weekend, with BT or another large firm potentially asked to take on TalkTalk’s customers if the company were to collapse.

TalkTalk is racing to find buyers for its two main businesses by the end of the month, with another significant payment to BT Group’s Openreach division due at that point.