Vodafone's rivals show interest in buying T-Mobile UK

Furthermore, Orange is saying that it has been in negotiation with T-Mobile for some time, talks are at an advanced level and Vodafone's bid (believed to be about £3 billion) is an unwelcome attempt to spoil a deal that, to all intents and purposes, is already close to done.

After days of blank-faced denial that it is involved in a takeover bid for the struggling Deutsche Telekom (DT) subsidiary Vodafone yesterday conceded that it has made a "preliminary approach" to the company - something that everyone in the industry knew anyway. What is it they say about lies, damned lies and statistics?

However, while Vodafone is looking for a straightforward takeover of T-Mobile, the Orange deal is somewhat sweeter as it would allow DT to participate in a form of joint venture that would bring pecuniary advantages to both parties. Rumour has it that the two operators have done the arithmetic and believe that a tie-up will bring what they describe as "synergy benefits" to the tune of between €4 billion and €6 billion.

Speculation is also rife that O2 is thinking of making a bid for T-Mobile UK.

Nonetheless both Orange and O2 continue to protest that they have no interest in T-Mobile. God knows who they think they are kidding but they continue their bare-faced denials even as the object of their attentions comes clean and admits that is up for sale and in talks with prospective buyers.

And, although it is widely accepted that T-Mobile is underperforming in Britain's crowded and cut-throat mobile market DT is not prepared to rid itself of the unit at a knock-down price. The parent company's pockets are long enough and the management determined enough to hold out for the top offer from the highest bidder - even if it has to wait for months for it to materialise.

It is known that Orange has had its eye on T-Mobile UK for some time and has made several unsolicited offers for it in the past.