3 rumoured up for sale - again

ONLY DAYS after Canning Fok, CEO of Hutchison Whampoa, denied that its 3G mobile network, 3, was up for sale, it's been confirmed that 3 is to sack about 130 managers in its UK operation.

According to a report in The Mail on Sunday the redundancies would amount to around 15 per cent of the company's total workforce.

Putting a brave face on it, a 3 spokesman told the newspaper that, "Following our annual planning process, 3 will actually employ more people in 2007 than this year."

The newspaper is adamant that disposing of the managers is a clear sign that the company is actually up for sale, saying that 3's employees are now even more convinced of the fact.

Obviously there's speculation as to who might actually buy 3 -especially since Vodafone CEO, Arun Sarin, has publicly stated that he might be interested.

The Mail on Sunday is also tipping France Telecom/Orange and (even less likely) BT to acquire 3. However, given the recent remarks made by O2 chief, Peter Erskine, the INQ is tipping O2 as the most likely candidate.

Firstly because 3's 3G customerbase would make a nice fit with O2. But mainly because O2's parent, Telefonica, is doing really well and would almost certainly look favourably on the purchase.

By contrast, Sarin would probably have an uphill battle to convince his shareholders than purchasing another floundering network would add value to it UK operations.

L'INQ 3 UK

See Also
Virgin Mobile and 3 to disappear