Telefonica O2 Interesting in Buying T-Mobile UK
Published on: 23rd Jul 2009
Note -- this news article is more than a year old.
Telefonica s O2 subsidiary would be interested in putting in a bid for T Mobile UK if its parent company Deutsche Telekom decides to put it up for sale In an interview with Financial Times Deutschland Telefonica s European CEO Matthew Key said that any acquisition would be likely to require an investigation by the UK s regulators as the merged company would have a market share in excess of 40
The only likely candidate which could get past the UK's regulators is Hutchison 3G UK, which is the smallest of the UK operators. There have been persistent, if always denied rumours that Hutchison 3G UK could be put up for sale by its owner Hutchison Whampoa.
Speculation that T-Mobile UK is up for sale have been rampant ever since Deutsche Telekom wrote down the value of the company by EUR 1.8 billion (US$2.4 billion) a few months ago, giving it a book value of around US$5.3 billion. The German company's management, however, believe new UK chief executive Richard Moat should be given the time to resuscitate it, so as to avoid a fire sale.
René Obermann, Deutsche Telekom's chief executive is also thought to be concerned that a sale of the UK division could throw doubt on the company's ability to remain a global player - leading to an eventual break up of the company.
Respective Market Shares After T-Mobile Merger
|Current Subscriber Base||Current Market Share||Merged Subscriber Base||Merged Market Share|
Data sourced from The Mobile World database based on Q1 subscriber numbers
Last month, it was reported that Vodafone had offered to do a swap with Deutsche Telekom for its Turkish subsidiary, although the deal was denied by Vodafone. France Telecom has also been rumoured to have made an offer to buy T-Mobile UK, but was rebuffed by Deutsche Telekom.
On the web: Financial Times Deutschland