Following the results of the UK referendum, Telefonca has shelved it's plans to sell O2's UK arm.

Following a landmark referendum that took place on June 24, 51.9 per cent of British voters opted for the UK to leave the European Union.

Telefonica has admitted that it was looking to sell its O2 shares in an effort to cut its £40 billion debt following the unsucessful takeover bid (worth £10.25 billion) from CK Hutchison - the owners of Three.

An O2 spokesperson has stated, "We continue to explore a number of options including an IPO which is being given serious consideration. A choice will be made when market conditions are deemed appropriate."