THE owner of T-Mobile said it had no plans to bid for UK rival O2 after failing to forge a takeover alliance.

German company Deutsche Telekom confirmed that it had held talks with Dutch telecoms group KPN about tabling an offer - thought to be worth about £14bn.

But those discussions have ended and Deutsche Telekom yesterday ruled itself out of bidding for O2 for six months by stating that it was no longer interested in the company.

In a statement, it said: "Deutsche Telekom has noted recent Press speculation about its potential interest in O2.

"Deutsche Telekom and KPN initiated exploratory discussions with respect to a potential acquisition of O2. These discussions have now ended.

"At the request of the Panel on Takeovers and Mergers, Deutsche Telekom confirms it has no present intention of making an offer for O2."

Slough-based O2 was part of BT until 2001, and has about 24.6 million customers in the UK, Ireland, Germany and the Isle of Man.