Update: France Telecom (NYSE: FTE) has denied that it made a bid to buy Deutsche Telekom’s troubled T-Mobile UK unit, according to Reuters. A spokesperson for the French telecoms group told the newswire that it did not make an offer for T-Mobile, nor had it been asked to make one. On Sunday, the Observer reported that it “was understood” that France Telecom had made an offer that had been turned down. Rumors have been rife over the fate of struggling T-Mobile UK, with Deutsche Telekom’s majority owners, the German government and private equity group Blackstone eager to be rid of the unit. In an interview with Reuters earlier this month, France Telecom’s CFO said it was not interested in buying T-Mobile and understood it was not for sale.

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France Telecom’s British carrier Orange was turned down after making a bid for its rival T-Mobile UK, by the troubled carrier’s German parent, Deutsche Telekom (NYSE: DT), reports the Guardian.co.uk, which did not site a source. In May, Deutsche Telekom wrote down €1.8 billion euros ($2.4 billion) on the value of its UK operations down to just around $5.4 billion leading to speculation that the German telecoms giant was willing to sell the unit, especially as DT’s two largest shareholders, the German government and private equity group Blackstone, were also said to be eager to be rid it. Detusche Telekom apparently wants to avoid a “fire sale,” and is hoping that its recently appointed UK chief Richard Moat, who steps into the job this week, will turn the business around. DT CEO René Obermann said in its earnings call in May that the UK unit should be given more time in the “medium term”.

Meanwhile, the Guardian also reports that “sources close to Vodafone” have dismissed rumors in which it would swap its Turkish unit in exchange for T-Mobile UK, boosting Vodafone (NYSE: VOD) in the UK, and giving DT a stronger footing in the eastern Mediterranean where it controls Greek carrier OTE.

• Industry Moves: Former Orange Romania CEO Richard Moat Appointed T-Mobile UK Managing Director
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