Vodafone has emerged as a surprise frontrunner to acquire Tiscali after submitting a £1.1 billion (E1.37bn) bid for the group. A possible deal would give Vodafone a fixed-line broadband presence in the UK, and allow it to merge Tiscali’s Italian operation with its Tele 2 business there.

BSkyB, BT, Swisscom-owned Fastweb, and Italian mobiles group Wind have also made it through to the second round of the auction.

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