FT reports that a deal is in the offing, citing unnamed industry sources.
Vodafone is lining up a bid for rival network T-Mobile in an effort to become the UK's largest mobile operator.
The Financial Times says any deal would give Vodafone a 40 per cent share of the market, leapfrogging the current market leader O2.
T-Mobile's UK operations, owned by Deutsche Telekom, are valued at €3-4 billion.
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