mmO2 battle Vodafone in Dutch talks

British mobile phone operator mmO2 is in early talks with three rivals bidding for its loss-making Dutch unit, according to Reuters.

It is thought that a deal could close within eight weeks. Among the three bidders for the unit are major European players Vodafone Plc and Deutsche Telekom AG's mobile division T Mobile.

It appears that both Vodafone and Deutsche Telekom are trying to build up their own units in the Dutch market.

There are at present five operators in the Netherlands and it is said that the market is due for consolidation.

Vodafone has more cash in hand than Deutsche Telekom, which is struggling to reduce massive debts, so it seems that Vodafone may find it easier to put up the money to acquire the unit.

The identity of the third bidder is not known. Spokespeople for mmO2 and Deutsche Telekom on Thursday declined to comment on a report in a Dutch paper about this sale.