BackHutchison may buy O2 in UK from Telefonica, says report
Other options Hong Kong-based Hutchison is studying include merging its Italian mobile unit with a local competitor
Premium
London: Hutchison Whampoa Ltd is exploring a purchase of Telefonica SA’s wireless unit O2 in the UK as billionaire Li Ka-shing’s company weighs expansion in Europe, according to people familiar with the matter.
Other options Hong Kong-based Hutchison is studying include merging its Italian mobile unit with a local competitor, the people said, asking not to be identified because the deliberations are private. The UK plans are at an early stage and no deal is imminent, said the people. Hutchison, which owns the Three mobile network, may pay as much as £9 billion ($13.6 billion) for O2 UK, the Sunday Times reported on Sunday.
The UK is primed for more deals after wireless market leader EE began exclusive talks last month to be acquired by BT Group Plc, leaving smaller carriers looking for ways to compete. O2 had also been in talks about a combination with BT, and was left out after the former UK phone monopoly chose EE.
Li is consolidating his holdings, which range from Asian real estate to telecommunications businesses across Europe, and is making more acquisitions outside his home market. Last year, Hutchison completed the takeover of Telefonica’s Irish unit for as much as €850 million ($980 million) to combine with Three Ireland.
Representatives for Hutchison and Madrid-based Telefonica declined to comment.
Telefonica has hired investment bank UBS AG to explore options for O2, people familiar with the matter have said. The phone company, which is looking for ways to exit the UK to help pay off debts, may also consider selling shares of O2 to the public, according to the Times. Bloomberg
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
