O2 UK is reported to be an acquisition target for two of Europe’s largest private equity firms, following the recent collapse of its proposed GBP10.25 billion (USD14.56 billion) sale to Hong Kong-based CK Hutchison. According to a report by the Sunday Times, Luxembourg-based CVC Capital Partners is considering teaming up with Apax Partners of France to form a consortium to buy the cellco from its Spanish owner Telefonica.
The report claims that other non-industry players such as KKR and Blackstone are monitoring the situation with interest, while current O2 UK CEO Ronan Dunne has also been linked with plans for a management buyout. Virgin Media owner Liberty Global and French budget mobile operator Iliad are also known to be interested in O2, which claimed a market-leading 30.8 million UK mobile subscribers at end-March 2016.