Carphone eyes deal on Tiscali's UK assets - report

LONDON, May 6 (Reuters) - Telecoms group Carphone Warehouse (CPW.L) is looking to finalise a deal to buy the British assets of debt-laden Italian Internet service provider Tiscali SpA on Wednesday, The Times reported.

The newspaper said talks between the two companies may continue in to the weekend.

"Carphone has always been clear that it would be interested in Tiscali's UK arm at the right price and Tiscali has to take a decision soon," a source familiar with the deal was quoted by The Times as saying.

If the deal goes ahead, it would create Britain's second-biggest broadband operator, it said.

Tiscali, Italy's third-biggest broadband operator by market share, confirmed it was in talks to sell the assets last month, without saying with whom.

The Times said it was unclear what price Carphone Warehouse, Britain's third-biggest broadband supplier, had offered.

Previously, Tiscali, whose debt stands at more than 600 million euros, had held talks with Britain's pay-TV and broadband firm BSKyB (BSY.L). (Reporting by Avril Ormsby; Editing by Richard Chang)