Pipex Communications was in focus yesterday amid talk that the supplier of telecommunications services was close to choosing a bidder for its web-hosting and business telecom divisions.

Talk in the market was that Pipex would decide between three potential suitors, thought to include Oakley Capital, the private equity group set up by Pipex founder Peter Dubens, and Thus Group, the telecoms company. Pipex closed down 1.8 per cent at 8¼p.