Telefonica To Sell O2 Back To BT In Strategic Deal
Spanish Telecoms company Telefonica is looking for a “strategic partnership” with BT and will sell its UK mobile operator O2 to it’s former owner in return for a 20% stake. Spanish website El Confidencial is reporting that Telefonica’s CEO César Alierta is “exploring a strategic alliance with British Telecom to create a European giant.” Although talks are apparently at an advanced stage El Confidencial believe that “there is nothing concrete yet”. BT sold their mobile business O2 to Telefonica back in 2005 for £17.7 billion.
José María Álvarez-Pallete, COO of Telefonica, was recently quoted as saying: “The question is if the UK becomes convergent in future. If the UK is to be a convergent market then we would evaluate all options. We don’t see a major preference for that from consumers [today]. If this situation was to change, then we would evaluate all options.”