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EU: Telefónica is prepared for regulators to halt O2 sale

By  |  May 1, 2016

Telefónica SA executives have left open the possibility that European Union regulators will halt the sale of its British unit O2 to rival CK Hutchison Holdings.

“A negative decision can’t be disregarded,” José María Álvarez-Pallete, the new chairman and chief executive of the Spanish telecommunications giant, told analysts and media during an earnings presentation on Friday.

Europe’s top antitrust regulator has warned that the merger could lead to higher prices and less choice for UK customers. The European Commission, the bloc’s executive arm, said last year that Telefónica’s sale of O2 to Hong Kong tycoon Li Ka-shing’s CK Hutchison Holdings would create the largest mobile-network operator in the UK.

Mr. Álvarez-Pallete countered on Friday that he thinks the deal would improve network quality and consumer choice. Both telecommunications companies, he added, have provided solutions to regulators that should address their concerns.

Full Content: The Wall Street Journal

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