Virgin Media O2 (VMO2) is in discussions to potentially acquire Salford-based TalkTalk Telecom Group, according to a Bloomberg report.

VMO2, brought together in a 2021 merger by Liberty Global Plc and Telefonica SA, has held exploratory discussions with TalkTalk, but Bloomberg reported it is possible that no deal is agreed.

The talks could value TalkTalk at up to £3 billion including debt.

TalkTalk has over four million customers, according to its last annual report.

TalkTalk was taken private by investment fund Toscafund Asset Management LLP in 2020 for about £2 billion, including debt.

Lazard is advising Talktalk while LionTree is advising Virgin Media O2, according to reports.