Deutsche Telekom seeks bidders for T-Mobile UK
GERMAN telecoms giant Deutsche Telekom has entered talks with Vodafone, France Telecom and Spain’s Telefónica to sell its struggling British unit T-Mobile UK, sources said last night.
All three firms are understood to have shown an interest in the unit, for which Deutsche Telekom hopes to net up to €4bn (£3.5bn).
One option could see France Telecom’s Orange UK merged with T-Mobile UK, but discussions are still in preliminary stages.
Deutsche Telekom hired JPMorgan earlier this year to sound out potential bidders for the unit, which has weighed on overall group profits.
The move was instigated by Deutsche Telekom chief executive René Obermann, who has been disappointed by the unit’s poor performance.
However, sources close to Vodafone suggested last night that the asking price for the unit was likely to be too high for the company to pursue its interest.
Deutsche Telekom was unavailable for comment last night.