3GScottishUser
31st December 2005, 12:14 PM
From Guardian Unlimited (31/12/2005):
Telefónica to quit alliance to clear O2 deal
The Spanish mobile phone operator Telefónica looks likely to quit Europe's largest mobile phone alliance in order to secure regulatory clearance for its £17.7bn acquisition of its British rival O2 in the new year.
The European commission has extended its inquiry into Telefónica's all-cash offer to January 10. It refused to give reasons, saying only that it extended inquiries if the firms involved submitted remedies to allay competition concerns or if a national competition authority asked the commission to rule on the acquisition.
The reason for the extension is understood to be Telefónica's involvement in the Freemove alliance, which includes Orange, part of France Télécom; Deutsche Telekom's mobile unit T-Mobile, and the Italian operator TIM, owned by Telecom Italia. Freemove, founded in March 2004, serves 182 million customers across the continent, outstripping even Vodafone.
O2 is in a rival alliance called Starmap that was forged three years ago to allow Europe's second-tier companies to take on Vodafone, allowing members to pay less for bulk orders for handsets and offer cheaper calls when roaming abroad. O2 is believed to be quitting Starmap. Telefónica is now expected to leave Freemove. Remaining in it would mean that three of the five UK networks - T-Mobile, Orange and O2 - were in the same group.
http://business.guardian.co.uk/story/0,16781,1675680,00.html
Telefónica to quit alliance to clear O2 deal
The Spanish mobile phone operator Telefónica looks likely to quit Europe's largest mobile phone alliance in order to secure regulatory clearance for its £17.7bn acquisition of its British rival O2 in the new year.
The European commission has extended its inquiry into Telefónica's all-cash offer to January 10. It refused to give reasons, saying only that it extended inquiries if the firms involved submitted remedies to allay competition concerns or if a national competition authority asked the commission to rule on the acquisition.
The reason for the extension is understood to be Telefónica's involvement in the Freemove alliance, which includes Orange, part of France Télécom; Deutsche Telekom's mobile unit T-Mobile, and the Italian operator TIM, owned by Telecom Italia. Freemove, founded in March 2004, serves 182 million customers across the continent, outstripping even Vodafone.
O2 is in a rival alliance called Starmap that was forged three years ago to allow Europe's second-tier companies to take on Vodafone, allowing members to pay less for bulk orders for handsets and offer cheaper calls when roaming abroad. O2 is believed to be quitting Starmap. Telefónica is now expected to leave Freemove. Remaining in it would mean that three of the five UK networks - T-Mobile, Orange and O2 - were in the same group.
http://business.guardian.co.uk/story/0,16781,1675680,00.html