Hutchison Whampoa to buy O2 from Telefonica for £10bn

Britain’s second-biggest mobile provider O2 is in talks to be purchased by Three mobile network owner Li Ka-shing for up to £10.25bn.

If Three and O2 combined it would create the UK’s largest mobile group.

O2 is currently owned by Spanish firm Telefonica, which has now entered exclusive discussions with Li Ka-shing’s company Hutchison Whampoa.

Hutchinson said in a recent filing to the Hong Kong stock exchange: “Shareholders and potential investors of the company should note that such negotiations may or may not result in any transaction, and accordingly are advised to exercise caution when dealing in the shares of the company.”

Shares for Hutchinson Whampoa jumped up 4% following the announcement.