Equistone Partners Europe Ltd. is among a handful of bidders for XLN Telecom Ltd., a U.K.-based provider of low-cost phone, broadband and energy services, The Telegraph reported, citing City sources.

XLN, which is working with Lazard on the auction, could be valued between £150 million and £200 million in a sale, according to the report. However, there is no assurance that a deal will materialize.

The company is majority-owned by Danish telecom entrepreneur and founder Christian Nellemann. He led a management buyout of the company in 2014, a transaction supported by Blackstone Group Inc.'s GSO Capital Partners LP, which owns a minority interest in the business, the report noted.

Equistone, Blackstone and Lazard did not comment on the potential sale, while XLN did not answer requests for comment sent by the news publication.