Vodafone Group PLC (VOD) shares were up 11 cents in late-morning trading Monday as news circulated that the company will try to buy T-Mobile UK, which is owned by Deutsche Telekom (DT).
None of the companies involved would comment on the reports.
Vodafone would become Europe’s largest mobile provider if it acquires T-Mobile UK. O2 would fall to second place. The Financial Times reported that T-Mobile UK has been a millstone around the neck of its parent company, so offloading to a rival such as Vodafone would make sense for Deutsche Telekom. Such a transaction also would face intense regulatory scrutiny in Europe; regulators there have grown much more stringent of late.