According to Sky News, the FTSE 250 firm turned down the 135p per share offer from asset manager Toscafund, which at the time is understood to have owned 19% of the group, on the basis that it did not provide sufficient value for investors.
Toscafund’s stake since then has risen to 29%, equal to the holding of TalkTalk’s founder and executive chairman Charles Dunstone , who also co-founded retailer Carphone Warehouse.
News of last year’s bid may spark renewed interest in TalkTalk as a potential takeover target in the consolidating telecoms sector, particularly with the company’s share price having fallen by over a third since the start of 2020.
In June, the company forecast that it will suffer a £15mln hit from the coronavirus in its current financial year alongside “stable” headline earnings, although the user base for its fibre broadband increased by 34% in the year to March 31.
A merger between TalkTalk and another market player would follow a trend of other large deals recently, particularly the £31bn combination between Virgin Media and O2, owned by Liberty Global and Spanish firm Telefonica respectively.
Shares in TalkTalk were up 0.7% at 75.4p in mid-afternoon trading on Tuesday.