LONDON (AFX) - Orange, the mobile operator owned by France Telecom, has emerged as the frontrunner in the auction to buy AOL UK, the internet business owned by Time Warner, the US media conglomerate, the Sunday Telegraph reported.
Orange and BSkyB have submitted the highest first-round bids for AOL UK which could fetch up to 650 mln stg, the newspaper said.
'Orange is going to bid very aggressively for AOL UK. France Telecom is terrified of the prospect of BSkyB getting hold of it and putting pressure on its internet business,' the Telegraph cited an executive with links to Orange as saying.
Other companies regarded as serious bidders include BT and O2, although the former could face regulatory hurdles. Carphone Warehouse also submitted a bid, but its interest is widely seen as purely opportunistic, the report said.
A deadline for second-round bids for AOL UK will be set for towards the end of this month. The auction is being run by Citigroup, the US investment bank. newsdesk@afxnews.com jlw COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited