That’s something of an irony because BT spun off its Cellnet unit in 2002. It then renamed itself as O2 and sold itself to Telefonica for over £17 billion in 2005.
Telefonica confirmed a deal was in the cards and in a prepared statement said that it was in talks with BT. But it warned that “there is no certainty that a transaction will take place”.
The deal, however, is likely to be just for O2 UK, and may cost BT as much as £6 billion. But, Reuters reports, BT is also talking to EE in the UK.
In a statement, BT agreed with Telefonica that talks were at a preliminary stage.
But that hasn’t stopped the price of BT’s shares shooting up on the Stock Exchange this morning.