By Jonathan Davies
BT has confirmed its interest in buying O2 from Telefonica.
Earlier this year, BT announced plans to move into the mobile market. And in a statement responding to reports, it said that two networks are interested in BT buying them out - one of which is Telefonica's O2. According to Reuters, BT has also entered talks with EE, the UK's largest mobile operator.
"All discussions are at a highly preliminary stage and there can be no certainty that any transaction will occur," BT said.
BT originally sold O2 to Telefonica for £1.7bn in 2004 after a re-branding in 2002 saw it ditch the BT Cellnet.
Telefonica also said it was in preliminary talks with BT over the deal.
In a statement, the Spanish telecoms group said: "Telefonica informs that, although it is in talks with British Telecom, these talks are in a highly preliminary phase and there is no certainty that a transaction will take place."
BT's shares were up more than 3% after the news broke, with Telefonica's up by 0.6%.
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