Vodafone Won't Purchase T-Mobile UK Says Chairman

Vofafone shareholders are against any potential purchase of beleaguered mobile phone operator T-Mobile as the board of UK's largest mobile phone network by revenue mulled plans to swap its Turkish business for T-Mobile UK.

The company's chairman, Sir John Bond, told the audience at the company's 25th annual general meeting that the purchase of T-Mobile is not on the table; apparently wrong-footing the firm's chief executive, Vittoria Colao said a few days earlier that consolidation would be welcomed in the UK.

It comes after rumours about a potential tie-in between T-Mobile and Vodafone were revealed end of June by the Financial Times.

The Newbury-based operator currently owns a quarter of the UK mobile phone market compared to 27 percent for O2. The acquisition of T-Mobile UK would lift Vodafone's share of the market to 41 percent and would make it big enough to warrant an investigation by the competition commission.

O2 as well is said to be interested in acquiring T-Mobile and France-Telecom owned Orange has already denied any involvement or interest in acquiring T-Mobile UK.

Earlier in May, T-Mobile wrote around £1.6 billion off the value of its mobile operations in the UK, bringing it down to £3.3 billion. Whoever purchases T-Mobile would bag the precious 3G licence owned by the company which the company bought for £4 billion.

Our Comments

We do fancy a potential strategic partnership between the 4th and the 5th placed mobile phone company, T-mobile and 3 networks. They are already both facing difficult challenges and merging their operations would not only allow them to cut costs but also pool their resources.

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