UK satellite broadcaster and growing broadband provider Sky is reportedly close to acquiring internet broadband provider Tiscali's UK business, after rival Carphone Warehouse pulled out of the auction.

According to The Sunday Times (itself a part of News Corp, which owns Sky), Sky's offer is £450m for the UK business.

If successful Sky would become Britain's third-largest broadband supplier with 3.6m customers - ahead of Carphone Warehouse and close to TV rival Virgin Media (3.8 million subscribers). BT remains number one (4.5 million) by some margin.

So far 20 percent of Sky TV subscribers have taken up its free broadband offer.

Tiscali logo

Tiscali has been up for sale since May, with Carphone Warehouse and Vodafone both interested parties.