Dubens puts broadband group Pipex up for sale

Pipex has appointed bankers to sell the broadband group, with a host of larger internet companies set to do battle for its 570,000 customers.

Peter Dubens, the entrepreneur who has built up Pipex through a series of acquisitions in the broadband and internet-hosting sector, launched a review of the business in January and now has appointed the investment bank UBS to conduct an auction of the group. Pipex had a stock market valuation of around £336m after a 14 per cent surge in the share price last week. The business grew revenue to £133m last year and is likely to garner a price tag in excess of £400m.

BT has been linked with an acquisition of Pipex in the past, but the business could be of more interest to Carphone Warehouse, Orange and Sky, the broadband companies which competed for AOL's UK business last year. There has been significant consolidation activity in the broadband sector due to intense price competition.

Mr Dubens, who also chairsthe online gaming firm UKBetting, has invested in raising Pipex's profile over the past year by sponsoring the Premier League football club Fulham and employing ex-Baywatch star David Hasselhoff to advertise its broadband products.

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