The troubled telecoms carrier Vanco is expected to be sold this weekend as it studies at least three takeover offers.

Insiders say that either BT or Cable & Wireless is the most likely buyer for the company, a virtual-network operator that rented bandwidth from its rivals but has run out of cash.

T-Systems, a division of Deutsche Telekom, is another candidate said to have expressed early interest.

Andrew Coppel, the restructuring expert drafted in to rescue Vanco, set a deadline of 5pm last Friday for bids.

He arrived at the company almost three weeks ago after founder Allen Timpany resigned and its shares were suspended.

Bidders say Coppel, who previously restructured Queens Moat Houses, asked them to express their offer as a percentage of the company’s debt they were willing to take on. Vanco was worth almost £400m at its peak, but its shares had plunged on worries over aggressive accounting and that its equity is in effect worthless.

However, it still has contracts with big customers such as British Airways, Siemens and the car-hire firm Avis Europe. BT or C&W could transfer these contracts to their own networks.

Shareholders, including JO Hambro and Fidelity, will receive nothing. Lenders, led by Lloyds TSB, which recently extended Vanco’s overdraft to £123m, will not be repaid in full.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive