Italy's Tiscali looking at business deal with Microsoft

MILAN: Tiscali is studying a possible business deal with Microsoft, the head

of the Italian Internet service provider was quoted as saying on Monday, adding

there would be no share swap between the groups.

In an interview with Corriere della Sera daily, chairman and chief executive

Renato Soru said Tiscali could sell Microsoft products via its network, which

has 7.4 million active users. "Tiscali needs their technology and Microsoft

could do with a European distribution web. Software and software services will

be sold more and more online and we have access to final clients," Soru was

quoted as saying.

He did not give a possible value for the deal. Soru also said Tiscali would

invest 80 million euros this year and three percent of turnover in 2003. Last

year, Tiscali made revenues of 741 million euros.

Soru also said Tiscali had more than 400 million euros in liquid cash and was

freeing up more resources, including from selling a company in the United

States. He gave no further details of the sale. Soru also said Tiscali would

pocket 45 million euros at the end of the month from real estate sales.