Telefonica explores strategic alliance with BT; still interested in O2 sale
Telefonica, the listed Spanish telco, is in talks with its UK peer BT to explore a possible strategic alliance, El Confidencial reported, citing people involved in the process. Although no decisions have been made, the telcos are understood to be looking at the possibility of creating what the report described as a European giant to stave off the possible incursion from US rivals.
One possible outcome of the current negotiations would see Telefonica sell O2 to BT in exchange for a 20% stake in the UK operator, the report said.
The move by BT and Telefonica is a reaction, in particular, to the interest expressed from US-based AT&T in acquiring a major European player, the report explained.
Source El Confidencial