TALK.L Share News (TALK)

(Sharecast News) - TalkTalk has announced a second extension to takeover talks with Toscafund Asset Management to allow commercial discussions and checks to continue.

The FTSE 250 telecoms group said on 8 October it was talking to Toscafund about a cash approach valuing the company at £1.12bn. TalkTalk agreed an extension to the first deadline on 5 November.

Toscafund, one of TalkTalk's biggest investors, had until 3 December to announce a firm intention to make an offer. TalkTalk has asked the regulator to give the talks more time and Toscafund now has until 17:00 on 17 December to come up with a firm bid.

"Commercial discussions and due diligence are progressing with TAM," TalkTalk said. "As a consequence ... the board of directors of TalkTalk has requested that the Panel on Takeovers and Mergers extends the deadline."

Toscafund's 97p a share proposal values TalkTalk shares at 16.4% more than the closing price before the approach was announced. It contains a number of conditions including that Charles Dunstone, TalkTalk's founder and executive chairman, supports the deal and agrees to "an election for any unlisted share alternative" for his shares in the company.

The hedge fund, headed by Martin Hughes, increased its stake in TalkTalk to 29.1% from 28% in June. Dunstone bought 1m shares soon after and owns 20.86% of the company.