Telefonica bid for mmO2

The Spanish newspaper El Mundo today mentions UK press reports published this weekend about the possibility that Spanish Telefonica is preparing to make a bid for the British mobile telephone company mmO2.

According to rumors in Spain and in the UK mmO2's chief executive, Peter Erskine, may have met chairman of Telefonica, Cesar Alierta, this weekend, a meeting which has triggered speculation that the Spanish firm could make a bid for the company and has helped to boost the UK company's shares. Telefonica has said it was unaware of any talks, and mmO2 has declined comment.

This latest news comes after reports surfaced last month claiming that Telefonica was considering a possible takeover bid, claims that the Spanish telephone group then denied. Experts then said that Telefónica wanted to close its takeover of BellSouth, forecast for the first quarter of 2005, before taking on any other major bids for other companies.

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