According to reports, BT is in early talks with Telefonica to purchase O2, the same mobile operator it released back in 2001. Not only has BT set its sights on O2, but the UK's largest network EE has also been offered in a separate deal.
BT has confirmed to Spanish press that Telefonica could end up with a 20 percent stake in the company, should a deal go through. The Telegraph notes that this would value the deal at around £10 billion. A BT spokesperson commented on today's reports, noting that BT is also interested in a second network operator (believed to be EE):
"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."
The telecoms giant wants to get back into the mobile market, which makes a potential O2 (or EE) deal an enticing one worth looking into. As noted above, it's still early days with preliminary talks under way.
Reader comments
BT in early talks to purchase O2 or EE
I hope they will sell BB's
BT shop is a good source of blackberry accessories :).
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and not just accessories: http://business.bt.com/business-mobile/devices/
but also i'm not sure if this is exclusive to business
Wtf how do you keep getting the first post? Is your refresh button wearing out? Lol
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That's funny!
Swiped, typed, and tapped with my T-Mobile USA (Only T-Mo rep still pushing ) Passport, son! The keyboard God returns! Founding Member of "Club Passport "..... the 2nd most exclusive club in mobile. Once you go BlackBerry, everything else is wack-berry!
I hope the monopolies commission look in to this.
Posted on my Q10.
No reason why they should. Not unless they buy both!
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Actually there are lots of reasons for the Competition Commission to look into this. BT is the UK's largest ISP. It is one of the largest pay TV providers. It is a huge company which has already been broken up once, if memory serves.
For the largest company in any field to buy a major provider in another, very closely related, field it would have to get past the Competition Commission.
Si.
Gotta have a mobile offering.
They're buying their way back into it...
• Zzzzmoqin'.... •
Excellent. EE Has Gone Downhill. Certainly Needs a Boost.
www.soundcloud.com/CHARLESTHEKID
I'm fairly sure O2 was a BT spin-off in the first place when UK started in the mobile phone game, so if it was it would be going home anyway. Seem to remember (vaguely) we had Vodaphone and BT's mobile offering then Orange came a little later.
Just had a bit of a digging session and come up with Cellnet which I'm 80% sure was O2's previous name, and that was a BT company
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Was o2 not previously called BT Cellnet and owned by BT?
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Anyone buying shares? Now is probably as good a time as any
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One carrier to rule the all.... While these mergers can bring better coverage for users, it can also lead to higher rates. Just have to see how this goes.
Anyone remember rabbit?
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Yes, I remember rabbit. Still a new signs around if you look carefully...
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Yip, BT took over cellnet, became BT cellnet, then O2 took over.
Maybe back to BT.
Who knows, maybe they will go public again.
Z10
Certainly hope there isn't a EE / O2 merger left EE due to their appalling customer and business service and wrongfully over charging my company, and still refusing to refund. Very happy with O2.
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I hope they sell BlackBerry devices First!!!
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Bible got updated today. I think ya'll should post about that :D
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Did they change the ending?
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Lol
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i've just dumped BT because of their poor service and abysmal customer relations and I'm counting down the days until my contract with the equally inept EE runs out in January 2015
So that's potentianlly good news: all the rotten eggs in one basket
I don't care either way as long as it improves the network and gets rid of signal black spots.
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The Orange / T-Mobile merger (aka FT / Deutsche Telekom joint venture) that created EE needed regulatory approval so any BT / O2 or EE acquisition certainly would. BT has historic ties with O2 (as mentioned above) and BT also has a few ongoing relationships with EE (BT use EE for their MVNO operation for example).
Be interesting to see how things pan out with this. Anything could happen - years ago I was in a staff presentation where we were told the company I was working with (Nat West) was going to merge with a Life Assurance company (Legal & General I think it was). We were told that all that was needed was shareholder approval. The end result of that particular proposal was that Nat West were themselves taken over by RBS (and didn't that work out well) and another Life Assurance company (Aviva) got the 'Bank Assurance' business via a joint venture.
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