Irish mobile operator O2 Ireland has reportedly received expressions of interest from companies including Hong Kong’s Hutchison Whampoa.
Although there is no official sales process, O2 Ireland is one of the assets Spanish telco Telefonica is…
Irish mobile operator O2 Ireland has reportedly received expressions of interest from companies including Hong Kong’s Hutchison Whampoa.
Although there is no official sales process, O2 Ireland is one of the assets Spanish telco Telefonica is considering selling to pay down debt, reported the Financial Times citing sources.
A sale could raise €700m, added the report.
Telefonica and Hutchison declined to comment.
The speculation is fuelled by comments made in late 2011 by Hutchison executive Canning Fok, who said his group would look to play an active role in European consolidation. Hutchison has also been linked to Irish incumbent Eircom’s mobile unit Meteor.
However, because Hutchison already owns mobile operator Three in Ireland, any merger plan will likely face intense regulatory scrutiny.
A similar deal in Austria that saw Hutchison buy its local rival Orange Austria suffered a long drawn-out takeover process at the hands of regulators. That acquisition eventually closed in January after nearly a year since it was first announced. The companies had initially hoped to close the acquisition in mid-2012.
Telefonica is seeking to slash its debt from more than €51bn to below €47bn by the end of this year, after managing to shave off €5bn in 2012.
It recently sold a 40% stake in its Central American unit for €382m, and has reportedly tasked BofA Merrill Lynch to consider further asset sales in countries such as the Czech Republic. It is also thought to be examining various financial options in Latin America.
