O2 Close To A Takeover Bid


Blackberry 7100x
A report in the UK newspaper, The Sunday Times has said that a joint takeover bid for the European mobile operator that offers such Blackberry models like the 7100x, O2 has floundered after the two parties could not agree on terms for their joint bid. The newspaper reported that the joint bid was being tabled by Deutsche Telekom and KPN, and would value the company at US$25 billion. The company closed on Friday with a stock market valuation of US$23.4 billion.

Deutsche Telekom was being advised by Morgan Stanley and Gleacher Shacklock, while ABN Amro is understood to have been advising KPN.

“The deal is dead for now, but it may not be dead for ever,” one adviser told the paper. Neither O2 nor its adviser, Merrill Lynch, had been contacted by the prospective bidders when the talks were called off.

The proposed joint bid would have broken the company up, with Deutsche Telekom retaining ownership of O2’s main UK and Ireland operations, and presumably merging the UK based T-Mobile and O2 GSM networks. KPN would have merged its existing German network with O2’s German network.

A bid by KPN on its own failed last year, apparently over a disagreement over the price O2’s management were asking for the company.

All three companies declined to comment on the report.