The T-Mobile takeover rumour mill continues

There was an interesting article in The Observer over the weekend, featuring an interview with Matthew Key, Chief Executive of O2.

Is he worried about being left out of the bidding war for Deutsche Telekom’s T-Mobile UK business unit? Quite probably, but he plays it quite cool. “We are watching developments closely, but if you’re asking me whether it’s consuming my time day and night, the answer is no,” he says. I’m entirely relaxed about the situation – no one is running around here like headless chickens.”

Meanwhile the Sunday Times reports Vodafone is talking to Deutsche Telekom about swapping it’s Turkish operation (formerly Telsim) for T-Mobile UK. To put that possibility into figures, Vodafone paid £2.6bn for the Telsim operation in 2006, but has since written it down due to competition from Turkcell – the dominate player in the market. It could raise £1.5bn of the projected £3m worth of T-Mobile UK by disposing of the Turkish unit.

Finally, the Daily Mail adds its usual dose of doom, gloom and ‘they’re all out to get us’ sensationalism with a report that says ‘Telecoms regulator Ofcom is warning potential bidders for T-Mobile that any takeover deal will face the toughest scrutiny, amid fears that it would lead to a sharp increase in prices for consumers.’

Happy days indeed, with sources close to Deutsche Telekom still claiming there’s ‘no rush’ to offload T-Mobile UK. With new MD Richard Moat (formerly of Orange) less than two months in the job there still may be time to avoid being swallowed up by a rival player. Speaking of Orange, they’re still in the frame for a deal with T-Mobile. Or not, if you believe the claims a possible deal was rejected a few weeks ago.