Stock Market

Deutsche Telekom said it has entered exclusive negotiations on combining its struggling British unit T-Mobile UK with France Telecom's Orange UK in a 50-50 joint venture.

The tie-up could benefit all operators in Britain's already crowded mobile telecommunications sector by reducing the pressure to cut prices, though mergers inevitably will mean job losses.

"This is another sign that we may be moving into a period of sustained M&A activity as firms look to realize cost savings through consolidation," said Mark Priest, a trader at ETX Capital in London.