Vodafone planning T-Mobile takeover bid

Vodafone is said to be considering a takeover bid for T-Mobile.

UK mobile operator Vodafone is considering a takeover bid for rival T-Mobile, according to a report in the Financial Times.

The newspaper cited sources close to the situation who said Vodafone was examining the case for making an offer.

Alternatively, it will look at the possible merits of a joint venture with T-Mobile.

However, since Vodafone already has a 25 per cent share of the mobile market and T-Mobile has 15 per cent, any commercial agreements signed could fall under regulatory scrutiny.

Indeed, if Vodafone was successful in its acquisition bid, the company would increase its market share to 40 per cent.

This would be well above the 27 per cent share of the current market leader O2.

Neither Vodafone nor T-Mobile have commented on the reports, but the Financial Times claims a tie-up would have "huge repercussions" for the mobile phone sector.

T-Mobile is estimated to be worth between €3 billion and €4 billion (£2.5 billion and £3.4 billion).

Daily Telegraph journalist Una Galani suggested that the disappearance of T-Mobile could lead to less aggressive pricing in the UK.

Meanwhile, Reuters has reported that sources familiar with the situation have told it that no decision on a possible takeover is imminent.

Although the news provider pointed out that both companies have in the past made clear that they are open to more consolidation in the UK mobile market.

The news comes after Vodafone confirmed that it had completed the merger of Vodafone Australia and Hutchinson 3G Australia.