Vodafone mulls acquiring T-Mobile UK

The world's largest mobile-servies provider Vodafone, is reported to be mulling acquiring T-Mobile UK, the UK affiliate of Deutsche Telekom, a move that would make it the biggest mobile phone operator in the UK.

Vodafone, the world's largest mobile operator by revenue, with 2008 revenue at £41.0 billion, is exploring the possibility of acquiring T-Mobile UK, whose enterprise value is estimated to be around $4.2 billion to $5.6 billion.

Newbury, England-based Vodafone, according to the London-based Financial Times, citing people familiar with the deal said that the company was exploring the possibility of an outright acquisition of T-MobileUK, or setting up a joint venture, although the deal runs the risk of not getting the nod of the UK regulator, Ofcom.

Telefónica of Spain is the biggest mobile operator in the UK through its company O2 with an approximately 27-per cent market share, Vodafone is the second biggest operator with 25 per cent, France Telecom's Orange has 22 per cent while T-Mobile has 15 per cent.

The acquisition of T-Mobile UK would give Vodafone a market share of 40 per cent and catapult it to the top mobile operator in the UK market.

Although, both Vodafone and T-Mobile have declined to comment, it is reported that T-Mobile's parent, Deutsche Telekom, has appointed JP Morgan as advisor to the deal.