German telecommunications company Deutsche Telekom is in talks with Vodafone Group, France Telecom, and Telefonica to sell T-Mobile UK, reported the Financial Times, citing people familiar with the situation.
FT reported that all the three companies have expressed their interest in T-Mobile, during preliminary talks.
Currently, T-Mobile is the fourth-largest mobile operator in the UK, with a 15% share of the market, while O2 is the largest UK operator with a 27% share, followed by Vodafone (25%) and Orange (22%).
The takeover of T-Mobile UK by any of the three companies would result in an entity with largest share in the UK market, although the deals run the possibility of being blocked by the competition regulators.
According to FT, one person who briefed about Deutsche Telekom’s plans said that the recovery in the global economy could raise the sale price of T-Mobile UK to €4 billion.
Earlier, Deutsche Telekom has hired US bank JPMorgan to advice on the strategic options for the business unit.
FT also said that a merger between T-Mobile UK and France Telecom’s Orange UK unit is also being considered.
