The company’s two main shareholders are pressing to sell the ailing UK division.
T-Mobile parent Deutsche Telekom is under pressure from its two main shareholders to sell the UK business, according to reports.
According to the Financial Times, the German Government and private equity group Blackstone are concerned over the state of T-Mobile UK, which became the first UK operator to issue a profits warning last month.
Sources told the newspaper that the idea was fist aired around six months ago, but was scrapped after falling asset valuations made the shareholders more cautious about a sale alone. An alternative is thought be a merger or acquisition deal with a UK rival.
The Financial Times said one option would be to merge with its network share partner 3 – a move that has long been seen as a possible fit.
When it issued its profits warning last month, the company said UK revenue is down around 21% year-on-year for the first quarter of 2009 and citied weakness in the US, the UK and Poland, caused by economic conditions and management changes in the UK.
Former Orange Romania executive Richard Moat is set to join T-Mobile as its new UK managing director.
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