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T-Mobile cut in value prompts talk of sale
Jim Armitage7 May 2009
Speculation that Britain's T-Mobile may soon go up for sale was heightened today as its owner Deutsche Telekom cut its valuation on the business by €1.8 billion (£1.6billion).
Talk has been rife for months that Deutsche will be looking for an exit from T-Mobile UK, which is struggling in the cutthroat market here. Today's massive writedown highlights just how much pain it is inflicting on its parent company. The T-Mobile UK hit dragged Deutsche into a first quarter net loss of €1.1 billion.
Deutsche chief executive Rene Obermann issued a profit warning only last week about the UK and US operations, saying the UK division had to do better. "We feel the UK market is competitive, and consolidation would do well for that market," he said.
France Telecom is widely seen as a frontrunner to buy the operation, thought to be worth about €3.6 billion, to combine it with its own Orange division here. Alternatively, Deutsche could keep the business but merge it with 3, the operator owned by Hong Kong's Hutchison Whampoa.
Analysts said either deal would probably not face opposition from the monopoly regulators.
Reader views (1)
Analysts said either deal would probably not face opposition from the monopoly regulators
?????
Yes it would, each of the 5 networks have 3G licences 4 also have 2G, 3 is 3G alone....3 cannot merge with anyone without offloading billions of £'s back by re-releasing a 3G licence back to Ofcom the UK's telco regulator.
- Me, UK, 09/06/2009 03:56
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