O2 may float in the UK

THE Spanish owner of O2 said it may float the British mobile network following the collapse of a tie-up with rival operator Three.

Telefonica said it had started exploring options, including the possibility of listing on the stock exchange, but it would continue to hold a majority shareholding.

The update comes as Telefonica announced it would also float infrastructure sub- sidiary Telxius Telecom later this year. It will be listed on exchanges in Spain.

In May the European Commission blocked Hong Kong-based mobile operator and Three owner CK Hutchison’s £10.3bn bid for O2, which has around 28.5pc of the UK market.

European regulators warned the deal would have meant higher prices and less choice for UK consumers.