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Friday, June 11, 1999 Published at 09:54 GMT 10:54 UK
Business: The Company File
Telecoms groups line-up for One-2-One
Consolidation fever is sweeping the European telecoms industry
Four European telecoms groups are each hoping to win a takeover battle for mobile phone operator One-2-One in bids valuing the operation at up to £10bn.
![[ image: Deutsche Telekom plan to merge with Telecom Italia collapsed recently]](/olmedia/365000/images/_366488_tele150.jpg) |
| Deutsche Telekom plan to merge with Telecom Italia collapsed recently |
Although the smallest of the four UK mobile operators, One-2-One is widely coveted for its strong brand and presence in the booming British mobile phone sector.
The Financial Times said four groups and companies were on top of the list of bidders:
But if none offer the price for which C&W and MediaOne are looking, One-2-One would probably be floated on the stock market.
Global consolidation
The sell-off comes as part of the consolidation sweeping through the global telecoms market.
Deutsche Telekom, which recently saw the collapse of a merger plan with Telecom Italia - owner of Telecom Italia Mobile - is reported to be especially keen to buy One-2-One.
Telecom Italia Mobile's inclusion in the list surprised observers as it was seen as having few resources to launch such a big bid, even before its parent succumbed to a takeover by Olivetti, the Italian telecoms group.
Vivendi, a utilities and telecoms operator, owns France's Cegetel mobile operator. Mannesmann owns German mobile giant D2.
The £10bn reported price tag includes debt at the group.
C&W last month mortgaged its half of One-2-One to raise £3.8bn in advance of a sale or flotation.
Deutsche cable sell-off
In a separate development, Deutsche Telekom, has said it hopes to complete the sale of stakes in some of its extensive but loss-making regional cable television network operations by the end of this year.
Chairman Ron Sommer said that he expected content providers to be among those companies which will take stakes in Deutsche Telekom's reorganised cable operations.
![[ image: One-2-One is a strong brand]](/olmedia/365000/images/_366488_woman_mobile150.jpg) |
| One-2-One is a strong brand |
But the world's largest software company Microsoft is reportedly teaming up with German media giant Bertelsmann in a bid to buy parts of the nextwork.
The FT said the list of biders included around 20 potential investors.
Some of these could acquire stakes of "about 25%" in one of more of the regional units.
Mr Sommers strongly rejected suggestions that the group was under pressure from competition regulators in Brussels to sell its cable business.
"Nobody can and nobody will force us to sell the cable business," he said.
He also reiterated Deutsche Telekom's interest in the Italian market despite the failed attempt to merge with Telecom Italia.
As for Deutsche Telekom's relations with French partner France Telecom, he said that the relationship was undergoing a radical rethink since the two fell out over Telecom Italia.
"I'm not going to throw away 10 years of partnership, but in the business world we have to keep repositioning ourselves," he said.
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The Company File Contents
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Relevant Stories 20 May 99 | The Company File Microsoft bids for German cable networks 10 May 99 | The Company File One 2 One for all |
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