O2 considers T-Mobile bid

<div>T-MOBILE UK could find itself at the centre of a bidding war after O2 became the second mobile network operator to consider buying the firm from Deutsche Telekom, its German owner.<br /><br />O2&rsquo;s Spanish parent company Telefonica is kicking the tyres at T-Mobile UK, after Vodafone entered talks with Deutsche Telekom earlier this week.<br /><br />Telefonica is worried that O2 could lose its position as the UK&rsquo;s biggest network operator if Vodafone buys troubled T-Mobile UK, which analysts estimate to be worth around &pound;3bn.<br /><br />O2 is currently the UK&rsquo;s largest mobile operator, with a 27 per cent share of total revenues, while Vodafone has a 25 per cent share.<br /><br />If Vodafone were to buy T-Mobile UK, however, the FTSE 100 firm would leapfrog O2 to become the market leader with a 40 per cent market share that would dwarf its competitors.<br /><br />Meanwhile, France Telecom&rsquo;s Orange is thought to be considering the merits of forming a joint venture with T-Mobile in the UK which would see plans for a sale scrapped. It has no interest in buying the firm outright, according to Orange insiders.<br /><br />JP Morgan is advising on a possible sale of T-Mobile UK, which has struggled to reach profitability. However, a sale is just one of a number of options and sources close to the talks stress that they are still at an early stage.</div>