MediaOne, Partner Seek Sale of British Wireless Venture

MediaOne Group Inc. and Cable & Wireless want to sell One 2 One Ltd., their British mobile-phone venture worth an estimated $13.1 billion, an investment banker advising on the sale said Wednesday.

“At the moment, the process is focused on a strategic sale, with the option of an [initial public offering],” said Charles Alexander, head of European telecommunications mergers and acquisitions at Lehman Bros. Inc., which is advising MediaOne.

MediaOne said Monday that it plans to focus on cable operations and shed its international wireless holdings after Comcast Corp. agreed to buy the Englewood, Colo.-based company for $55.5 billion.

C&W;’s readiness to sell its share of One 2 One could signal that the second-largest British phone company plans to focus more on Internet and high-speed services for businesses under its new chief executive, Graham Wallace, analysts said.

Potential buyers are likely to include companies such as Germany’s Deutsche Telekom and Mannesmann, which have European networks but need a foothold in Britain. Neither company would comment.

U.S. companies including Bell Atlantic Corp. and SBC Communications Inc. could also be interested in One 2 One, the Financial Times reported. Bell Atlantic and SBC weren’t immediately available to comment.

Lehman’s Alexander said C&W; and MediaOne hope to have a short list of potential buyers by late April. C&W;’s Wallace also may use the company’s earnings report, expected May 12, to reveal more about his plans.

One 2 One, which entered the British market later than industry leaders Vodafone Group and Cellnet Ltd., has a 15% share.

MediaOne shares fell $1 to close at $66.50 on the New York Stock Exchange.