Sky and BT frontrunners to buy AOL

AOL is hoping to make £1bn from the sale of its UK access division

Sky and BT are reported to be heading the queue to buy AOL's UK internet arm.

AOL announced the decision to sell its UK access division last week, and today is the deadline for bidders to register their interest.

According to press reports, BSkyB and BT Group are "frontrunners" in the race to snap up the Time Warner-owned company, which is the UK's third-largest ISP after BT and NTL/Telewest.

If either bid is successful, AOL customers could see their email addresses changed to BT or EasyNet, the ISP that Sky bought last year for £211m.

EasyNet also provides business solutions and owns UK Online. Sky aims to launch its broadband service this summer, and may offer it free to existing satellite subscribers. 

As the current wholesale provider for most of the UK's 1.3 million AOL broadband subscribers, BT would find it relatively simple to add AOL's customers to its existing 2.6 million users.

AOL has appointed investment bank Citigroup to oversee the sale, from which it hopes to make £1bn. Industry commentators predict that the final figure is likely to be closer to £660m.