UPDATE 1-Tiscali hires banks for strategy advice

(Adds name of bank unit, details, share price)

MILAN, March 31 (Reuters) - Italian broadband provider Tiscali (TIS.MI: Quote, Profile, Research) has hired Intesa Sanpaolo (ISP.MI: Quote, Profile, Research) unit Banca IMI and JP Morgan (JPM.N: Quote, Profile, Research) to help it review its strategic options, speculation of which sent its stock soaring on Monday.

But Tiscali said in a statement released after the market close that it had not received any formal offers for itself or any of its assets.

Its stock ended 12.83 percent up to 1.997 euros -- more than a month high -- in Milan after a weekend report in Italian business newspaper MF said 10 companies were bidding for its British operations and five for its Italian operations.

In Britain, Tiscali ranks fourth with a 15 percent market share.

The announcement of the hiring confirmed a Reuters story on March 25 that identified the banks.

Although Tiscali has repeatedly said it has not been approached by buyers, the names of Italy's Fastweb (FWB.MI: Quote, Profile, Research) and British phone companies Vodafone Group Plc (VOD.L: Quote, Profile, Research) and BT Group Plc (BT.L: Quote, Profile, Research) circulated in the market earlier this month.

After years of making losses and cutting costs, Tiscali began to expand in what investors and analysts saw as a way to groom it for sale.

It faces a tougher environment in its home market. Its 5 percent share of the broadband market is dwarfed by Telecom Italia's (TLIT.MI: Quote, Profile, Research) 63 percent, Fastweb's 12 percent and Wind's 9 percent. (Reporting by Gilles Castonguay, editing by Will Waterman and Gunna Dickson)