Telefonica sets sights on O2 takeover
31-10-2005
by Ralph Averbuch

Spain's Telefonica has made an audacious STG17.7 billion bid for O2, aiming to create the world's second largest telecoms operation after Vodafone.

Telefonica is prepared to pay 22 percent over O2's closing price on 28 October.

Telefonica has been keen to expand further in Europe after building its network in Latin America.

Meanwhile O2 is Europe's sixth-largest mobile phone company, and has been much talked about as a likely takeover target since it was separated from BT some four years ago. However, it seems likely that other bidders may now emerge.

The O2 group claims 20.7 million customers and employs some 12,000 staff. O2 Ireland revenues for the year ended 31 March 2004 were EUR720 million.