Partner Article

BT in 'preliminary' talks to buy O2 in a £6 billion deal

BT has confirmed it is in “highly preliminary” talks to acquire O2’s business in the UK in a £6 billion deal.

The telecoms firm said it was also in talks with a second UK network, which it did not identify, but Sky News has reported that the mystery network is EE.

BT’s share price rose 4% after the announcement.

EE currently has the biggest UK mobile phone market share at 33% while O2 follows with 27%.

Telefonica has previously said that O2 remains core to its business but has not ruled out asset sales to meet a target to reduce debt.

A deal would bring O2 back into the BT fold, having been spun off from BT in 2001 and then bought by Telefonica in 2005.

The company said: “BT Group notes the recent press speculation relating to a potential transaction involving Telefonica UK (O2) in the UK.

“We continue to develop our own plans for providing enhanced mobile services to business and consumer customers, in line with our previous announcements.

“We remain confident of delivering on these plans and have also been exploring ways of accelerating them, including assessing the merits of an acquisition of a mobile network operator in the UK.

“We have received expressions of interest from shareholders in two UK mobile network operators, of which one is O2, about a possible transaction in which BT would acquire their UK mobile business.

“All discussions are at a highly preliminary stage and there can be no certainty that any transaction will occur.

“A further announcement will be made if and when appropriate.”

This was posted in Bdaily's Members' News section by Clare Burnett .