Tiscali resumes talks over British division.
Tiscali's parent company declined to name the suitor, but reports said TalkTalk owner Carphone Warehouse was planning an offer by the end of the month.
The Italian group, which had almost 1.8m UK broadband customers at the end of September last year, said talks for the disposal were taking place alongside debt refinancing with lenders.
A move by Carphone would raise hopes of a rescue for Tiscali, which saw its shares suspended last month after UK takeover talks with BSkyB collapsed.
A takeover of Tiscali would give Carphone more than 4.6m customers in the UK..