O2, the mobile operator, is being taken over by Spanish
telecoms giant Telefonica for £17.7bn.
Telefonica, which is aiming to spread its operating presence
across Europe, has had O2 as a takeover target for some time, With
the takeover, Telefonica will acquire mobile networks in Germany,
Ireland and other regions, in addition to the main one in the
UK.
O2 was previously known as BT Cellnet, before it was spun off
from the BT group before the telecoms crash. BT is now slowly
building up a new mobile phone business with a new network.
O2 has been hit by some billing problems in recent months and
is rolling out a new multi-million pound customer relationship
management system with the help of IBM Global Services.
Telefonica said the O2 brand would be retained and its
headquarters will remain in the UK. It is not yet known whether
there will be any cuts in O2 call centres or IT departments arising
from any operational crossover between the companies.
Call centre workers at O2 recently threatened industrial action
over proposed new pay scales and pension arrangements, which they
claimed fell below what was offered when the company was owned by
BT.
O2 chairman Sir David Arculus and chief executive Peter Erskine
will join the Telefonica board.