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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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