Mannesmann, the German telecommunications group, is in talks to buy UK mobile phone firm Orange and has also entered the $3 billion auction for Cablecom, Switzerland's leading cable company.

The moves underlines the group's ambitions to become a force in the European telecoms market. Orange, valued at nearly £17 billion at last night's close, was one of the bidders for the third mobile phone licence and earlier this month the High Court ruled in its favour in an appeal it made against a decision by the Office of the Director of Telecommunications Regulation to award the licence to the US/Irish Meteor consortium. The Regulator is appealing the decision to the Supreme Court.