Don’t rule out more bidders for embattled telecoms services supplier TalkTalk (TALK).

Private equity investor Toscafund has made a 97p per share offer for the business, valuing it at £1.1 billion. While the approach implies a rough 16.5% premium to the stock’s 83.3p level before the announcement, it would cement a five-year run of value destruction for investors.

TalkTalk shares traded at more than 400p in 2015, and the decline has continued even after the return of founder and 30% shareholder Charles Dunstone in 2018 as executive chairman.

While other private equity buyers could emerge, mobile giant Vodafone (VOD) is the most likely strategic potential buyer, according to Philip Carse of technology website Megabuyte. With around £1.6 billion revenue versus Vodafone’s £5.5 billion UK income, he believes TalkTalk would add scale as well as fixed line and pay TV components.

Vodafone has fallen to a distant third in the UK following the proposed Virgin Media/O2 merger, and fourth including pay TV. BT (BT.A) with its EE mobile network remains the UK’s number one supplier.

Berenberg believes Toscafund may have to raise its offer to placate disgruntled minority shareholders angry at the low premium compared to past share price levels.

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