Virgin Media O2 reportedly abandoned plans to buy UK-based TalkTalk due to market and economic conditions, after entering discussions on a proposed acquisition worth £3 billion earlier this year.
The Telegraph reported interest in the deal has been dropped due to concerns over access to UK credit markets.
Negotiations over a potential deal started in July, at a time when there was growing interest in TalkTalk from rival industry players including Vodafone Group, BT and Sky.
Vodafone and Sky reportedly took their interest a step further, making offers to acquire the fixed-line broadband company, but deals have not materialised.
With talks with Virgin Media O2 apparently also collapsing, The Telegraph reported TalkTalk entered talks to access BT wholesale unit Openreach’s fibre network.
TalkTalk has been under heavy financial pressure: The Telegraph claimed a £1.1 billion debt spurred lenders to impose stricter covenants and the company’s auditor to issue warnings on its finances.