Consolidation
Pipex is one of the last big independent broadband providers still to be operating in the UK, following a number of recent deals such as the purchase of PlusNet by BT.
The prospect of a sale has therefore been closely watched by rivals such as BT, BSkyB and Virgin Media.
Pipex itself has expanded through a number of acquisitions in the past few years.
In March 2006 it bought the Homecall voice and line rental business from Phones4U for £44m. It has also acquired Toucan from IDT Telecom and Bulldog's broadband customers from Cable & Wireless.
The company also used Baywatch star David Hasselhoff in a recent advertising campaign to attract customers.
In addition to its Pipex brand, the firm also sells internet services under the Nildram, Bulldog and Freedom2Surf names - each itself formerly an independent internet service provider.
