Deutsche Telekom's O2 Dilemma: To Bid Or Not To Bid

Dow Jones News writes that Deutsche Telekom AG might be mulling over a bid for O2 as well a day after Telefonica agreed to buy the company for $31.5 billion

Phil Kendall at Strategy Analytics is not sure it would be a good idea for Deutsche Telecom to get involved. "The price that Telefonica has put down is pretty high. I'm not sure it would make sense for DT to pay much more," he said.

Other potential bidders might be Hong Kong-based Hutchison Whampoa, which owns third-generation U.K. operator 3, and Japanese communications giant NTT DoCoMo. Kendall believed BT would stick to the sidelines after spinning off O2 in 2001. "I don't get a sense that they're that interested any more," Kendall said.