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O2 and Virgin Media in talks to merge

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Virgin Media

Mobile operator O2 may be set to merge with broadband giant Virgin Media to create one of the country’s largest entertainment and telecoms firms.

A tie-up between two major players in Britain’s telecoms and media sector would create a major rival to BT.

Spanish firm Telefonica, which owns O2, confirmed that it was in talks with Virgin-owner Liberty Global.

The company stressed that the negotiations were ongoing and there was no guarantee they would reach a deal.

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