mm02 confirms takeover approach

Mobile phone group mm02 said tonight that it had received a potential takeover approach.

The group said in a statement that it had noted recent speculation about “a possible transaction” and confirmed it had received and considered a proposal.

But it added: “Discussions have now ceased.”

The group has been mentioned as a potential takeover target amid persistent City speculation of consolidation in the mobile communications sector.

In January, fresh talk emerged about a possible merger of mm02 with Hutchison Whampoa.

Hutchison has been cited as a possible bidder for the company formerly owned by BT because it would be able to sell its third generation technology through mm02’s outlets.

Slough-based mm02 was also reported to be a target of Japanese mobile giant DoCoMo in November.