Telefonica to Buy O2 for $31.4 Billion

Spanish telephone giant Telefonica SA has announced plans to purchase British mobile phone company O2 -- formerly known as BT Wireless -- in a blockbuster deal valued at $31.4 billion. O2 currently boasts 25 million customers across the UK, Ireland and Germany.

The deal, which is expected to close in January, follows Telefonica's $3.3 billion purchase of a majority stake in Czech wireless carrier Cesky Telekom. Telefonica Chairman Cesar Alierta said the O2 purchase will give the company a much-needed boost in Europe after expanding its Latin American operations.