Report: Three U.K. owner prepping $13.6 billion bid for O2
Telefonica wants to pull out of the U.K. wireless market and use the proceeds of any deal to pay back debt. One alternative option that the company is considering is a public offering of O2 shares. On the other side, Li is looking to consolidate his wireless properties. He recently purchased the Irish operations of Telefonica for $980 million and merged it with Three Ireland.
The rumored deal comes a month after British Telecom reached an agreement to exclusively bid $19.5 billion for carrier EE. The latter was the first to bring 4G LTE to the U.K. In November, before deciding on the EE transaction, there was a rumor that British Telecom would give up 20% of its equity to Telefonica for all of O2. That deal is now off the table as BT works on finalizing the EE bid and Telefonica awaits the possible offer from Hutchison Whampoa.
source: SundayTimes (Subscription Req'd) via Bloomberg