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Monday, December 15, 2014

BT enters exclusive negotiations with Deutsche Telekom and Orange about buying EE

BT Group plc says it’s entered into an exclusivity agreement with Deutsche Telekom and Orange, allowing it to negotiate a possible acquisition of EE’s UK mobile business. It originally responded to press speculation with a statement last month.

Although the agreement has ended BT’s discussions with Telefonica about O2 UK, it doesn’t mean that a BT/EE merger will definitely take place.

BT says the current form of the deal would include it buying EE for £12.5 billion in a combination of cash and BT shares. This would result in Deutsche Telekom holding a 12% stake in BT and appointing a board director, while Orange would hold a 4% stake in BT.

Thomas Dannenfeldt, Chairman of EE’s Board of Directors and Chief Financial Officer of Deutsche Telekom, said “We firmly believe that convergence is the future of telecommunications in Europe. Customers want fixed-mobile converged services from a single provider. The proposed transaction with BT offers the chance to further develop our superbly positioned mobile business engagement in the UK and to take part in the outstanding opportunities of an integrated business model.”

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Author: The Fonecast
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