Sunday, October 30, 2005

Telefónica Bids $31.5 Billion to Acquire O2

Telefónica announced plans to acquire O2 Plc, the largest mobile-phone operator in the UK, for GBP 17.7 billion ($31.5 billion). The bid represented a 22% premium over Friday's closing prices.

O2 plc has 100% ownership of mobile network operators in three countries - the UK, Germany and Ireland - as well as a leading mobile Internet portal business.

O2 UK has over 15 million mobile subscribers; O2 Germany has 8.38 million mobile subscribers; and O2 Ireland has 1.53 million mobile subscribers.

In addition, O2is a founding member of Starmap Mobile Alliance, has operations on the Isle of Man (Manx Telecom) and owns O2 Airwave - an advanced, digital emergency communications service. In addition, O2 has established the Tesco Mobile and Tchibo Mobilfunk joint venture businesses in the UK and Germany respectively.

See also