UPDATE 1-Tiscali talking to Carphone on UK assets - source
* Talks running in line with debt renegotiations
* Tiscali shares rise 20 percent, Carphone up 3 percent
(Adds detail, share price)
MILAN, April 24 (Reuters) - Debt-laden Italian Internet service provider Tiscali SpA (TIS.MI) is in talks to sell its British assets to British telecoms and retail group Carphone Warehouse (CPW.L), a source close to the talks said on Friday.
Tiscali, Italy's third-biggest broadband operator by market share, said it was in talks to sell the assets without saying with whom. The source said: "Talks are with Carphone".
The talks are parallel to renegotiating Tiscali's debt with banks, which was 601 million euros ($792 million) at the end of 2008.
Tiscali shares were up 19.7 percent to a 10-day high at 0.383 euro at 1006 GMT. Carphone Warehouse shares were up 2.95 percent at 148.25 pence.
Earlier on Friday, Italian daily MF reported Tiscali expected to get a binding offer from Carphone Warehouse by the end of April. Carphone declined to comment on the report.
At the end of last year, newspapers reported Tiscali's British assets were worth about 500 million pounds ($733 million). However, one analyst said valuations for those assets have suffered with the economic downturn.
(Reporting by Maria Pia Quaglia and Danilo Masoni; Editing by Dan Lalor)
($1 = 0.7592 euro)
($1 = 0.6821 pound)
((danilo.masoni@thomsonreuters.com; +39 02 661 29 734; Reuters Messaging: danilo.masoni.thomsonreuters@reuters.net))
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