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Deutsche in the wings may move in for tasty dish.
(From Irish Independent)
NEWS of the Telefonica bid immediately sparked hopes of a bidding battle for what analysts have long insisted is one of the telecom sector's hottest takeover targets.
O2, Europe's sixth-largest mobile phone company which owns assets in Britain, Ireland and Germany, is one of the few independent pure mobile phone operators, and has long been tipped as a likely target to help trigger a new telecoms gold rush.
After news of the 26bn bid broke, there was immediate speculation that Deutsche Telekom would lift the ante and fire in a bid of its own.
The German telecoms giant has long been touted as a potential buyer.
Analysts say it wants to bolster its presence in the UK mobile market, where it owns the struggling T-Mobile cell phone business, by purchasing O2's stronger-performing British arm. Deutsche Telekom declined to comment.
However KPN, which also saw its solo bid for O2 spurned last year, remained adamant it had no plans to rekindle negotiations.
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