Deutsche Telekom is reportedly interested in AOL France, the French subsidiary of US internet access provider AOL, a Financial Times report said.
The report said US media giant Time Warner had decided to sell the European activities of its subsidiary AOL, and it was thought to be likely that the subsidiaries for the individual countries would be sold separately.
French companies Neuf Cegetel and Free were also reportedly interested in AOL, the report said.
French press reports claimed that Italian group Telecom Italia and SFR, another French company, had withdrawn from the bidding process.
Deutsche Telekom already operated on the French market through its internet subsidiary T-Online, and the acquisition of AOL France would enable it to expand its share of the market significantly. However, a spokesman refused to comment, the report said.