Virgin Media O2 ‘discussing £3bn offer’ with TalkTalk

TalkTalk's offices in Salford

Virgin Media O2 has submitted a £3bn offer to buy Salford-based communications group TalkTalk.

The mobile phone giant is said to have made the offer in recent weeks, according to Sky News.

Speculation rose in April that TalkTalk was the subject of a possible offer, with the likes of Sky and Vodafone touted as potential suitors.

But the latest reports claim talks are under way between TalkTalk and Telefonica and Liberty Global owned Virgin Media O2, although on a non-exclusive basis.

Investment bank, Lazard, is understood to be advising TalkTalk, which was taken private in December 2020 after a £1.112bn offer from Toscafund Asset Management.

The deal enabled Sir Charles Dunstone, TalkTalk’s founder and chairman, to retain a major stake in the business.

Sir Charles founded the business in 2004 when it was part of Carphone Warehouse, before being demerged.

Any offer for TalkTalk, which has 4.2m customers and 2.4m fibre connections across the UK, is likely to lead to a counter bid from Nick Read, Vodafone’s chief executive.

The communications sector is undergoing consolidation centred around the full-fibre roll-out currently being undertaken across Britain by the likes of Openreach, the infrastructure arm of BT Group, CityFibre Holdings, and a range of smaller, independent operators.

TalkTalk and Virgin Media O2 both declined to comment.

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