O2 has 34.5 million mobile phone customers and Virgin Media has 3.3 million mobile phone customers and 6 million broadband and pay-TV customers.
A merged company would be a major rival to BT. However, according to analysts, the motivation is less driven by commercial strategy and more promoted by a simple wish by the parent companies to divest the units.
Telefonica has debt of $37.7 billion.For the last seven years, Liberty Global has been paying Sir Richard Branson £10 million a year to use the Virgin name after it bought the company.The deal is expected to be announced on Thursday.
Source: This news has been taken from electronicsweekly.com
