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.

O2’s Spanish parent company Telefonica is kicking the tyres at T-Mobile UK, after Vodafone entered talks with Deutsche Telekom earlier this week.

Telefonica is worried that O2 could lose its position as the UK’s biggest network operator if Vodafone buys troubled T-Mobile UK, which analysts estimate to be worth around £3bn.

O2 is currently the UK’s largest mobile operator, with a 27 per cent share of total revenues, while Vodafone has a 25 per cent share.

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.

Meanwhile, France Telecom’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.

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.

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.

O2’s Spanish parent company Telefonica is kicking the tyres at T-Mobile UK, after Vodafone entered talks with Deutsche Telekom earlier this week.

Telefonica is worried that O2 could lose its position as the UK’s biggest network operator if Vodafone buys troubled T-Mobile UK, which analysts estimate to be worth around £3bn.

O2 is currently the UK’s largest mobile operator, with a 27 per cent share of total revenues, while Vodafone has a 25 per cent share.

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.

Meanwhile, France Telecom’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.

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.