J P Morgan Cazenoze advising on disposal options
Telefonica has said that it has appointed J P Morgan Cazenove to look at all the options available for the total or partial disposal of its Airwave business. The announcement confirms reports in The Times last week leaking the news that Telefonica was considering a sale.
Airwave is the TETRA based network that O2 operates on behalf of Police, Ambulance, Fire and other public safety organisations.
One of the largest PFI projects in the country, the network now supports 200,000 users, but O2’s owner Telefonica has decided that its priorities now lie elsewhere. in 2000 O2 Airwave signed a 19 year, £2.9 billion contract with the Government to operate the network.
The review process will follow intial consultation with the Government, and will take months, a statement from the operator said.
Telefonica is carrying large debts following the acquisition of O2, and a sale of the profitable Airwave, which is backed up by solid goverment contracts, could be part of a plan to reduce that debt burden.