[3GScottishUser]

From BBCi

Mobile phone group O2 has agreed a takeover offer from Spanish telecom company Telefonica.
Telefonica is to pay £17.7bn in cash for the firm in order to get a foothold in two of Europe's largest mobile phone markets -the UK and Germany.

Under the deal, the Spanish group will pay 200 pence per share, a 22% premium on Friday's closing price of 164.25p.

Earlier this year Telefonica snapped up a controlling 51% stake in Czech phone firm Cesky Telecom for £1.9bn.

http://news.bbc.co.uk/1/hi/business/4391754.stm

[getti]

I just heard about it on the news now. £17.7bn

[3GScottishUser]

Read an article in the Sunday Times yesterday and it concluded they were unlikely to be sold!!

£2 a share is a fantastic price and Telefonica should make a good fit for 02 (they have i-mode too).

Prospects now look very positive for 02.

[getti]

I still think NTT DoCoMo would have been better. They have the technology and drive to do great in the UK.

And as O2 have a deal with NTT for I-Mode it would have made sence

[Ben]

Even so, it's exciting stuff! It feels a little like O2 has been in limbo for some time now - a change of ownership could really shake things up. As if it finally happened!

[@NickyColman]

At last its happened. In the article it says O2 will keep its existing brand and will remain based in the uk which i think is a great idea! The O2 brand is one of the most powerful in the mobile market!

[bsrjl1]

It's not a done deal. Expect T-Mobile to come in with a counter offer. O2's share price is already over-valued, plus the premium Telefonica will be paying. I didn't realise that they had so much spare cash lying around!