Shares in Italian broadband operator Tiscali jumped 10 per cent yesterday to €2.52 after a report that Vodafone may bid for the company in the next 24 hours.

A report in the Italian daily MF said that Vodafone would try to buy the telecoms firm outright.

Tiscali's shares were up 7.7 per cent to €2.52 (£2) on the news. The company put itself up for sale this year after shrinking its operations.

The ISP said last month it has received a number of offers.

BskyB are also thought to be interested in bidding for Tiscali to increase their broadband customer base in the UK, and Carphone Warehouse has also been mentioned in some reports as a potential buyer.