MM02 is Europe's sixth biggest mobile phone operator

Investors anticipate that Europe's sixth biggest mobile firm could be the subject of a fresh approach following a bid from Dutch operator KPN on Friday.

Slough-based MMO2 rebuffed the move, and KPN has said since it has no plans to make a hostile bid for the company.

However, traders believe that KPN's failed offer could open the door to further takeover bids from rivals.

Too small?

Among operators seen as a potential suitor for MMO2, Japan's biggest mobile phone firm, NTT DoCoMo, is thought to be a possible contender.

MMO2 has for some time been seen as a takeover target, mainly because analysts believe it is too small to survive on its own.

Our stated objective is to grow the business organically MMO2 spokesman How MM02 shares are performing

Shares in the company hit a record in morning trade on the London Stock Exchange, reaching 111p before falling back to 107p - a gain of 15.25p - by the day's end.

Earlier in February, MMO2 said it had added an extra 855,000 new subscribers in the three months to December, raising its subscriber base to 20.1 million.

However, the firm is something of a minnow compared with the world's largest mobile phone company, UK rival Vodafone, which has about 130 million customers.

"Our stated objective is to grow the business organically," a spokesman for MMO2 said.

"However, if any proposal were to come in then like any Plc the board would consider it in the interests of shareholder value."

Formed from the demerger of UK telecom group BT's mobile business in 2001, MMO2 holds assets in Germany and Ireland as well as Britain.

Separately, KPN unveiled full-year net profits of 2.7bn euros ($3.4bn; �1.8bn), on the back of deep cost cutting.