Hong Kong billionaire Li Ka-shing-promoted Hutchison Whampoa is in talks to acquire for U.K. telecom service provider O2, the Sunday Times reported.
Hutchison, which owns the Three mobile network in the U.K., may pay O2’s owner Telefonica $13.6 billion for the telecom carrier.
Telefonica has hired investment bank UBS to explore options for O2. The company, which is looking for ways to exit the U.K. to help pay off debts, may also consider selling shares of O2 to the public. Hutchison has hired Moelis & Co (MC) to look for possible deals in the U.K.
At present, UK’s 4G mobile operator EE is in talks to merge with BT Group, the largest fixed-line company.
Earlier, Telefonica was ready to sell O2 to BT. BT opted EE for discussion.
Li earlier bought Telefonica’s Irish unit for $980 million to combine with Three Ireland.
