Telefonica Bids $18bn for O2
Mobile phone group O2 has agreed a takeover offer from Spanish telecom company Telefonica. Telefonica is to pay £17.7bn ($31.6bn) for the firm in order to get a foothold in two of Europe’s largest mobile phone markets – the UK and Germany.
Under the cash deal, Telefonica will pay 200 pence per share, a 22% premium on Friday’s closing price of 164.25p.
O2 has been subject of bid interest recently, with Dutch firm KPN and Deutsche Telekom making approaches.
Telefonica, which has agreed a deal with the board of the UK company, said O2 would retain its existing brand and continue to be based in the UK.
Source: BBC.
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