Rumors of a T-Mobile sale continue in the UK with reports now saying that bids have come in from both Vodafone (NYSE: VOD) and O2. However, executives at the struggling fourth-place carrier are now reportedly saying that they would prefer a merger with France Telecom’s Orange.
The Guardian reports that sources have pegged offers from both Vodafone and O2 to be a low as £3.5 billion ($5.7 billion). That’s likely because the two carriers would have to give up valuable spectrum they were granted in the 1980s if the deal went through, and because a quarter of the carriers subscribers are actually customers of Virgin Mobile (NYSE: VM). Analysts expected the carrier to receive about £4 billion.
France Telecom’s Orange represents the third largest provider in the UK. Together, the two would be able to save a lot of money if they pooled their resources together. Last week, rumors resurfaced that the company was for sale even though all parties involved have declined to discuss whether that’s true.

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