BT agrees rescue deal to buy broadband operator TalkTalk

The UK's biggest broadband provider, BT, has agreed to buy rival operator TalkTalk to save the company from collapse.

The takeover would end of months of speculation over the future of TalkTalk and mean services for its millions of customers will continue as normal.

BT chief executive Alison Kirkby said it provided "a safety net" for those who rely on TalkTalk. The administrator said it also provided certainty for TalkTalk's 900 staff.

However, Virgin Media called the deal a "stitch up" which allows BT to "tighten its grip" over the market. The government has given itself the power to have the final say on the takeover, citing its importance to critical public services.

TalkTalk has 1.5 million retail customers and one million wholesale customers across the UK.

BT's Kirkby told the BBC's Today programme: "Two and a half million customers, including vulnerable households, and key emergency services might have lost their services if Talk Talk had failed, which it was on track to do.

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