UK Operators in Bid to Buy the Phones4u Retail Chain

UK mobile phone retailer, Phones 4u could be brought by one of the mobile network operators, sparking a possible bidding war between the companies. The trade magazine, Mobile Today reported that some operators are collaborating for a potential carve-up of Phones 4u's 450 stores, direct sales and insurance assets.

One senior operator source told the magazine: "There is either an elegant solution of everyone getting a share, or a more aggressive push [by one party] to go alone. The objective [from operators] is the same: bring calm to the market."

France Telecom's Orange was rumoured to have been in sole discussions with the firm, but talks broke down late last year.

The group was formed by John Caudwell in 1987, and was sold to private equity firms Providence Equity Partners and Doughty Hanson for £1.46 billion in September 2006. It was known for aggressive sales tactics, but changed its marketing and sales techniques last year.

On the web: Phones 4u - Mobile Today

Posted to the site on 26th June 2009