Deutsche Telekom not bidding for O2 |
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Tue, 27 Sep 2005 09:05
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FRANKFURT: Deutsche Telekom AG is not interested in acquiring U.K. mobile phone operator O2 Plc. Denying news reports, the German telecom major's chief financial officer Karl-Gerhard Eick said his company has no interest in O2.
There were reports in the British business press that Deutsche Telekom is about to announce a 18 billion-pound takeover of O2.
Eick said the company would book 1.2 billion euros it gained from the sale of 10 per cent holding in Russia's OJSC Mobile Telesystems.
Slough, England-based O2 is the biggest U.K. mobile carrier by users, with a market value of about 13.4 billion pounds.
Deutsche Telekom had in August announced that it may make a bid for O2, a plan accepted by the company's directors and recommended to its investors. It can make an offer in case O2 announces talks to be sold to another company.
Earlier, Deutsche Telekom, along with Dutch operator KPN, had proposed a joint bid for O2. But, this did not progress. There are reports that KPN on its own may make an acquisition bid.
Other potential buyers like Spain's Telefonica SA and BT Group Plc too have said they are not interested in acquiring O2.
Deutsche Telekom had already agreed to buy Tele.ring Telekom Service GmbH, Austria's fourth biggest mobile phone company, for 1.3 billion euros, which is seen as the company's move to consolidate in Europe.
Analysts cite hurdles like regulatory issues in the U.K. as possible reasons for Deutsche Telekom withdrawing from the O2 bid.
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