BT’s board met yesterday (9 December) and reportedly agreed to continue with separate takeover talks with both O2 and EE. The UK’s fixed incumbent wants to reach a decision within ten days.

According to Reuters, the meeting was a regular one and not specifically convened to discuss the negotiations, which BT confirmed last month.

What has certainly become clear is that purchasing O2 is the easier option for a number of reasons. It has only one seller (Telefonica) compared to EE’s two (Deutsche Telekom and Orange), so simplifying negotiations.

In addition, Telefonica is seen as more of an eager seller as it wants to cut debt. And O2 owns spectrum that is more compatible with BT’s strategy.

However, so far no details have leaked about how such a deal might be structured. It could involve a cash payment, shares or even some kind of asset exchange (Telefonica is reportedly interested in retaining a 20 per cent stake in any new entity).

But EE has its attractions too, notably a larger network and more subscribers than O2. Acquiring EE would give BT instant leadership in the UK’s mobile market.

The UK’s fixed incumbent is currently in the box seat for negotiations but rivals, including Hutchison Whampoa and a number of private equity firms, are waiting in the wings.