BT skirts around mmO2 takeover rumour

5 Aug 2003

BT Group [BT.L] is working hard to play down rumours that it is interested in buying back its former mobile division mmO2, although its failure to issue an outright denial over such a move has merely piqued the curiosity of the telecoms industry. A spokesman for BT said that while it was ‘no secret that BT regards mobile as a major area of business growth potential’ the company did not consider it needed to operate its own network to provide services. Rumours of a possible takeover have been rumbling around since May and were given credibility by BT chief executive Pierre Danon’s comments that he would prefer to own a network rather than become an MVNO. On Sunday The Observer newspaper reported that some of the company’s larger shareholders backed plans to acquire mmO2, fearing that its recent MVNO agreement with T-Mobile could effectively leave BT out in the cold.

United Kingdom