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Bidders close on One2One
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June 11, 1999: 5:00 a.m. ET
Report: U.K. mobile operator attracts five suitors; valued at $16B
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LONDON (CNNfn) - Five companies are pursuing One2One, the U.K. cellular operator slated for sale or flotation by Britain's Cable & Wireless and U.S. cable group MediaOne, according to a report published Friday.
Telecom Italia Mobile emerged as a surprise potential bidder alongside established contenders including Deutsche Telekom and Mannesmann of Germany. France Telecom and acquisitive French conglomerate Vivendi have also expressed interest, according to London's Financial Times.
One2One was earmarked for disposal by its owners as C&W seeks to focus on its core communications business and MediaOne faces rival takeover bids from AT&T (T) and Comcast (CST).
Analysts have valued One2One at between 8 and 10 billion pounds ($16 billion) and last month C&W mortgaged its 50 percent stake in the company for 3.8 billion pounds.
The company declined to comment on the report and said it was still evaluating options with advisers Lehman Brothers and Merrill Lynch.
Though trailing fourth in the U.K. mobile market, One2One offers a rare opportunity for the five bidders, all of whom have existing mobile interests in their domestic markets, to move into Britain's rapidly maturing market.
Deutsche Telekom (FDTK) is still seen as the front runner in any auction after amassing a war chest to fund acquisitions following its failed bid for Telecom Italia.
However, Mannesmann (FMMW) also has cash to spend and France Telecom (PFTE) is keen to amend its international strategy as its alliance with Deutsche Telekom threatens to unwind.
Cable & Wireless (CW.) shares added 0.43 percent at 820 pence in early trading Friday. 
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