O2 bid fails to materialise

15 Aug 2005

A bid for UK-based mobile group O2 thought to be worth around GBP14 billion (USD25.4 billion) has reportedly been scrapped after venture partners Deutsche Telekom (DT) and KPN of the Netherlands failed to agree terms. The pair were rumoured to have been plotting a buyout for weeks, pushing O2’s share price up to GBP1.495 by Friday afternoon. It is thought that the deal would have seen DT take over O2’s operations in the UK and Ireland, whilst KPN would have acquired its German business to avoid any competition issues in DT’s domestic market. Neither DT nor KPN have made an official comment on the bid and a spokesperson for the UK group said it is currently not engaged in talks with any potential suitors.