The company is the country's smallest mobile phone operator, and is currently owned by Cable and Wireless and US company MediaOne, who hold 50% each.

They have put One-2-One up for sale, and telecom companies from across Europe have been lining up to buy it.

According to the Financial Times newspaper, Mannesmann and France Telecom have now edged out rivals Deutsche Telekom, Telecom Italia and Vivendi, the French environmental services group that has ventured into media and communications.

Analysts have estimated that One-2-One could fetch up to £11bn ($17.2bn), but the newspaper reports that both Mannesmann and France Telecom have set an upper limit of about £8bn on their bids.

If this fails to satisfy One-2-One's owners, the company could be floated on the stock exchange.

Because of the eager interest of investors in telecoms stocks during recent months, this could prove to be the more lucrative option.