PRESS DIGEST - British business - June 30
DEUTSCHE TELEKOM TESTS THE WATER WITH VODAFONE, SPARKING TALK.
Deutsche Telekom (DTEGn.DE) is attempting to gauge bid interest in Deutsche-owned T-Mobile UK, with Vodafone (VOD.L) understood to have been approached. There have been rumours of a sale since May, when Deutsche wrote down the value of T-Mobile to just 3.3 billion pounds. If a formal sale process were launched, other likely bidders would include France Telecom (FTE.PA), though a sale is not thought likely until debt markets have recovered. A takeover of T-Mobile UK by Vodafone would give Vodafone around 40 per cent UK market share.
PRIVATISATION OF ROYAL MAIL GETS LOST IN THE POST WITH...
Business secretary Lord Mandelson said on Monday that the part-privatisation of the Royal Mail will not go before parliament before the next UK general election. The announcement of a delay had been widely expected, with many viewing the move as designed to placate left-wing Labour MPs in the run-up to the election. UBS and Rothschilds, advising the government and the Royal Mail respectively, have picked up one million pounds in advisers' fees during the nine-month sales process.
Prepared for Reuters by Durrants ($1=.6076 Pound)
