Hutchison in talks to buy O2 in UK

Li Kashing's Hutchison Whampoa Ltd started exclusive talks to buy O2, Telefonica SA's United Kingdombased wireless carrier, for as much as 10.25 billion pounds ($15 billion) in the biggest overseas purchase by the billionaire.

The owner of the Three mobilephone network in the UK will pay an initial sum of 9.25 billion pounds in cash, Hutchison said on Friday. It may pay as much as 1 billion pounds extra after the completion of the deal,whichwill create UK's biggest wireless provider by number of subscribers.

The UK is primed for more deals after wireless-market leader EE began exclusive talks last month to be acquired by BT Group Plc, leaving smaller carriers looking for ways to compete. O2 had been in talks about a combination with BT, and was left out after the former UK phone monopoly chose EE.