BT's bid to buy rival O2 is 'imminent' as an announcement is expected this week
BT is poised to strike a multi-billion deal to buy rival 02, with an announcement expected as early as this week.
The telecoms goliath is in takeover talks with EE and O2, Britain’s first and second largest mobile providers.
Last night sources familiar with the talks described a deal as ‘imminent’.
'Imminent' deal: O2, which has 24million customers, would be cheaper, and a better fit for BT, analysts say
It is believed BT has opted for O2, more than a decade after it offloaded the business when it demerged Cellnet. Now BT wants to get back into mobile phones in a bid to provide all four telecoms services – mobile, internet, landline and TV – in one package.
Last month it emerged BT had been approached by both O2’s Spanish owner Telefonica and one of EE’s joint parents, Orange.
O2, which has 24million customers, would be cheaper, and a better fit for BT, analysts say.
There have been reports that Telefonica, which is struggling financially, wants to buy a stake in BT as part of the payment for O2.
Industry figures have warned that a deal with EE, which is larger and has some 27million customers, is likely to present more regulatory hurdles because it would make BT the largest provider of mobile, landline and internet in the UK.
This, however, could fall foul of competition authorities and raise the possibility of BT being broken up. BT held a crucial board meeting yesterday morning, though it is not believed that any decision was finalised.
It is thought the meeting, which would be required to sign off such a deal, was routine and not specifically related to its mobile talks.
BT (down 8p to 408.5p) wants to push ahead with a deal before Christmas, and had already said it would launch consumer mobile phones in the Spring.
All the companies involved refused to comment.
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