Vodafone Mulls Bid for T-Mobile UK: Report

Vodafone(VOD Quote) is considering an offer to buy T-Mobile UK, according to a report.

The U.K.'s Vodafone, the world's largest mobile operator by revenue, is exploring an acquisition of T-Mobile UK, which has an estimated enterprise value of 3 billion euros to 4 billion euros ($4.2 billion to $5.6 billion), even though a deal could be blocked by regulators, the Financial Times reports.

T-Mobile's parent company Deutsche Telekom (DT Quote) has appointed JPMorgan Chase as an adviser, the newspaper reports.

Vodafone declined to comment for the Financial Times. But people familiar with the situation said the company was looking into making an offer for T-Mobile UK, or at least setting up a joint venture.

A merger would make Vodafone the No. 1 mobile phone company in the U.K. in terms of market share with 40%, the report says. It now has a market share of 25%, putting it second behind O2, which is owned by Spain's Telefonica(TEF Quote).