Hutchison Whampoa in talks with Telefonica regarding potential offer for O2, Moelis advising Hutchison, UBS advising Telefonica
Hutchison Whampoa is in preliminary talks with Telefonica about making an offer for the listed Spanish telecoms group’s O2 mobile telecoms subsidiary, The Sunday Times reported. The newspaper cited City sources for the claim.
Hutchison, a Hong Kong-based conglomerate controlled by Li Ka-shing, has hired bankers at Moelis & Co to advise on possible deals in the UK, the item said. Hutchison owns Three, a UK mobile network operator.
It is believed that Telefonica has hired UBS to advise it regarding O2, according to the report. Although Telefonica could cash in by floating O2, sources cited by the newspaper said selling the business could realize more value.
O2 is valued at between GBP 8bn (EUR 10.47bn) and GBP 9bn and has a subscriber base of 23m, the article said. Three has approximately 8m subscribers, according to the report.
Hutchison, Telefonica, Moelis and UBS refused to comment, the article said.
Sunday Times