3 job cuts inspire takeover talk

The takeover rumour mill that has surrounded 3G mobile operator 3 has been given another spin by the news the company plans to make 130 staff redundant.

A spokesman for the operator told silicon.com that, after an annual planning meeting, it has decided to "rebalance its resources" and 130 workers will lose their jobs. He added that 200 new retail staff are to be hired next year.

The news has given fresh fuel to speculation of a buyout, after a period of intense consolidation in the mobile industry has left 3 as the only potential takeover target in the UK. 3's parent company Hutchison has repeatedly denied the company is for sale and ruled out the possibility of a floatation.

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The spectre of a takeover has previously been encouraged by Canning Fok, CEO of Hutchison, who said at the launch of the company's X-Series product he would have to consider it if a cheque was placed in front of him, adding the company is not actively looking for bidders.

Various telcos and mobile operators have been suggested as potential suitors by industry watchers although only Vodafone has so far owned up to being interested in a buy.

O2's name has also cropped up as a would-be buyer. O2 CEO Peter Erskine recently told silicon.com the mobile operator is not interested in a union but believes its third-generation rival is ripe for consolidation. "It doesn't make any money... we're not interested in buying 3," he said.