KPN considers hostile bid for MmO2

Dutch telecoms group KPN has not ruled out a hostile bid for mobile phone group MmO2 after the latest round of takeover talks ended, reports The Irish Times today.

"All options are always open," a KPN spokesman said. 'We never exclude any options".

MmO2, is the sixth-largest European mobile phone firm with assets in Britain, Germany and Ireland - where it owns the second mobile operator O2 - and is valued at around €12.1bn.

The firm is seen as an ideal takeover target as analysts maintain that it is too small to survive on its own.

KPN has been interested in particular in MmO2's German business, O2 Germany, which would boost its own German unit E-Plus, and create a stronger third-ranked rival to market leaders Deutsche Telekom and Vodafone in Europe's largest telecoms market.