BT jumps on news it is in talks to buy O2 from Telefonica
November 24, 2014 11:57 am
News emerged this morning from BT (BT-A.L) that is in talks with spanish giant Telefonica to buy O2. O2 the uks second biggest mobile network was originally offloaded by BT in 2001. With telefonica later purchasing O2 in 2005 for around £18Bln.
BT (BT-A.L) intends to re-enter the mobile network market next year in a possible wholesale agreement with German owned network EE, however has expressed an interest in buying either O2 or EE’s uk businesses.
In a statement this morning BT responded to recent press speculation with the following:
BT Group plc (BT) notes the recent press speculation relating to a potential transaction involving Telefónica 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.
Shares in BT jumped this morning on the news, currently trading at 390.60p (up 10.60p / 2.79%)
News emerged this morning from BT (BT-A.L) that is in talks with spanish giant Telefonica to buy O2. O2 the uks second biggest mobile network was originally offloaded by BT in 2001. With telefonica later purchasing O2 in 2005 for around £18Bln.
BT (BT-A.L) intends to re-enter the mobile network market next year in a possible wholesale agreement with German owned network EE, however has expressed an interest in buying either O2 or EE’s uk businesses.
In a statement this morning BT responded to recent press speculation with the following:
BT Group plc (BT) notes the recent press speculation relating to a potential transaction involving Telefónica 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.
Shares in BT jumped this morning on the news, currently trading at 390.60p (up 10.60p / 2.79%)
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