Sky is completing with a Lancashire-based telecoms group to acquire the business-to-business operations of TalkTalk which is currently valued at £150m.
The media group is a rival bidder to Nelson-based Daisy for the division which has around 80,000 small business and corporate customers.
Houlihan Lokey was hired in March to oversee a potential sale for TalkTalk Business Direct which was then valued at around £200m.
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The division was previously linked with a possible £175m takeover with Daisy in 2018 but a deal was never completed.
TalkTalk Business Direct has an annual revenue of more than £85m and an EBITDA of over £17m.
TalkTalk declined to comment when approached about the potential deal, which was first reported by
The Salford-headquartered telecoms provider was taken private in 2021 in a £1.1bn deal.