Report: Deutsche Telekom In Buy-Out Talks With Three Suitors Over Ailing UK Mobile Unit
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Talk of T-Mobile looking to unload its struggling UK mobile division are heating up again with a report that says the company has begun talks with Vodafone (NYSE: VOD), France Telecom (NYSE: FTE) and Telefónica of Spain. People familiar with the situation told FT.com all three companies have shown interest in the Deutsche Telekom (NYSE: DT) subsidiary, although discussions are only preliminary.
SEE ALSO: Report: Vodafone Considering Bid For T-Mobile UK
The unnamed reportedly said that an improvement in the global economy had raised hopes of earning €4bn ($5.7 billion) for the sale. “If we’re lucky, we could end up with a three-horse race,” the person said.
T-Mobile is the fourth largest carrier in the UK, with about a 15 percent share of the crowded market. Telefonica’s O2 is the market leader, with 27 percent, Vodafone has 25 percent and France Telecom’s Orange has 22 percent. Rumors have been rampant that T-Mobile might want to sell the unit, but it has denied it several times. Once again, representatives of Deutsche Telekom and its three telecoms rivals declined to comment – as did a JPMorgan, the US bank that Deutsche Telekom hired, according to FT.com.
Last month, Richard Moat, who began heading the T-Mobile unit in June, said a turnaround plan is coming and their goal is to reposition the mobile network, and improve its market share and financial performance. Complete details were due out this autumn.
Posted In: Mobile, Money, M&A & Venture Capital, Mergers & Acquisitions, Companies, France Telecom, Orange, T-Mobile, Vodafone
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