Boss says mm02 not up for sale - much...

Following an unsuccessful bid from Dutch telco KPN last week, it seems that the battle to buy mobile company mm02 is only just beginning.

Talks between KPN and mm02 came to a halt on Friday, when the UK's fourth-place mobile company rejected an offer thought to be worth about £10bn, with the telco saying it had no intention of launching a hostile bid. But on KPN's website, the company is hinting that it hasn't ruled out another bid.

Following the original collapse of talks, KPN confirmed that the negotiations were over but added: "The board of KPN believes that the logic for a combination between the two companies remains intact."

A statement posted on Tuesday gives an even clearer indication that the telco still fancies its chances: "KPN confirms that it has no current intention to make an offer for mmO2 but... KPN reserves the right to make an offer for mmO2 in the event that the board of directors of mmO2 agrees to recommend an offer by KPN or a third party announces a firm intention to make an offer for mmO2."

Peter Erskine, mm02's CEO, was coy about the prospects for a takeover. "We are not overtly trying to sell the company," he said, adding "I do not rule out someone else coming back for us".

The City, at least, is gambling on another bid. Shares in mm02 leapt more than 17 per cent on Monday, following confirmation of the original bid, and are still rising.

Another interested party could be Japanese mobile giant, NTT DoCoMo. Keiji Tachikawa, DoCoMo's president, said that if mm02 was ready to adopt its mobile internet platform, the company could be interested in a buyout but would need to negotiate with its 3 subsidiary over any moves into the UK market, according to the Financial Times.