0
Wireless

Vodafone mulls offer for T-Mobile UK - report

Monday 29 June 2009 | 09:23 CET | News
Vodafone is considering an offer for T-Mobile UK, a deal that would catapult it to the top spot in the UK with a 40 percent market share, the Financial Times reported. The UK daily quoted people familiar with the situation, which said that the company was examining the merits of making an offer for T-Mobile UK, or setting up a joint venture. In February, Vodafone and Hutchison Whampoa, the Hong Kong conglomerate, announced plans to combine their Australian mobile businesses. The T-Mobile UK operations have an estimated enterprise value of EUR 3-4 billion. The FT said the deal runs the risk of being blocked by regulators. T-Mobile UK owner Deutsche Telekom has appointed JP Morgan to advise on strategic options for the underperforming business. O2 is currently the UK's largest operator with a market share of about 27 percent, followed by Vodafone with 25 percent. Orange has 22 percent and T-Mobile 15 percent. Regulators might let one operator secure such a large share of the market since that is the case in France, Italy and Spain, analysts said. Vodafone head Vittorio Colao said in November that he wants to play a part in consolidation of the sector. The UK is the only major European market with five mobile operators and consolidation could ease pricing pressures and help margins.


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Categories:
Countries:
::: add a comment