Deutsche Telekom 'eyeing up O2'

Deutsche Telekom (DT) - which owns cellco T-Mobile - could be prepared to pay up to £18bn for UK telco O2, according to the The Business.

Market whispers have become increasingly louder over recent weeks, reports the Sunday newspaper. And it quotes Andrew O'Neill, an analyst at Bernstein Investment Research and Management who said: "The question is not if Deutsche Telekom will make a bid for O2 - but when."

Despite this renewed interest surrounding O2, some industry watchers remain unconvinced claiming that any tie-up between the two mobile operators could raise regulatory difficulties.

Earlier this summer O2 was reportedly the subject of an €20bn takeover bid from Dutch operator KPN and DT. However, that joint bid for O2 was scrunched up and thrown in the bin after DT and KPN failed to agree terms. ®