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Spanish incumbent may opt to sell minority stake to single bidder instead.

Telefonica has revived plans for an initial public offering of O2 UK, and could list the unit during the fourth quarter of this year.

Sources cited by Bloomberg on Monday said the Spanish incumbent – still keen to reduce debt – will look to float a minority stake. However, as previously, the decision to proceed will be influenced by market conditions, and the telco may instead sell a stake to an individual bidder, or cancel the plan altogether.

An IPO of O2 UK has been on the cards ever since May 2016, when the European Commission blocked 3UK parent CK Hutchison’s proposed £10.25 billion (€12.06 billion) acquisition of the mobile operator.

Reports in September claimed Telefonica had chosen several banks, including Barclays, UBS, and Morgan Stanley to handle the process.

However, Telefonica UK CEO Mark Evans in October ruled out an IPO in 2016, due to market uncertainty in the aftermath of the U.K. referendum on EU membership and and the impending U.S. presidential election.

O2 is not the only asset that Telefonica has tried to monetise in order to reduce its debt.

Telxius, a wholly-owned subsidiary that manages Telefonica’s global network infrastructure, was also headed for an IPO last year, but the plan was cancelled after Telefonica received what it considered inadequate indicative offers.

Instead, in February Telefonica agreed to offload a 40% stake in Telxius to private equity firm KKR, in a deal worth €1.28 billion.

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