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Sources say Telefonica has approached banks with regard to possible IPO process.
Telefonica is working on plans to float its O2 UK business, it emerged this week.
The Spanish incumbent has started talks with banks about the IPO process with a view to listing the mobile operator in London, the Financial Times reported on Tuesday, citing two unnamed sources that it said have been briefed on the situation.
A flotation could allow Telefonica to retain a stake in O2 UK, they said.
However, Telefonica has yet to make a firm decision on O2’s future and is still considering various options, including a sale to a private equity buyer, the report added. The telco is holding talks with PE firms, one source said.
Telefonica is keen to reduce debt, something its planned sale of O2 UK to CK Hutchison would have helped it to achieve.
With that deal having been blocked by the European Commission in May, it is now exploring other avenues.
There has been much speculation over the future of the U.K. mobile operator in the intervening weeks, including talk of a management buyout engineered by chief executive Ronan Dunne in conjunction with private equity firms.
