Spanish telecommunications company Telefonica SA (TEF) has restarted negotiations with Royal KPN NV to acquire German mobile-phone business.

Munich-based carrier Telefonica Deutschland Holding AG (O2D) is continuing talks over the acquisition of KPN's E-Plus unit. The company is managed and owned by Spain's biggest carrier and owner of the German O2 brand.

In another statement, KPN, who used to monopolize the Dutch phone market, had announced that it is currently in talks to sell E-Plus but did not name the prospect buyer.

Telefonica and KPN have pushed through the previous agreement to merge O2 with E-Plus even after negotiations and talks had fallen apart, said sources familiar with the deal.

Rabobank International had calculated E-Plus value to around EUR 8.5 billion (USD 11.2 billion) the previous year.

The business worth has declined rapidly and is projected to be around EUR 4.5 billion despite merging with O2 by the Sanford C Berstein analysts.