BT confirmed exclusive negotiations to acquire EE from Deutsche Telekom and Orange. EE would provide BT with an advanced 4G network across the UK, accelerating its mobile strategy.
The key headline terms, which are non-binding:
- A purchase price of £12.5bn (US$19.5 billion) for EE on a debt/cash free basis through a combination of cash and new BT ordinary shares issued to both Deutsche Telekom and Orange.
- Following the transaction, Deutsche Telekom would hold a 12% stake in BT and would be entitled to appoint one member of the BT Board of Directors.
- Orange would hold a 4% stake in BT.
- BT expects significant synergies mainly through network and IT rationalisation, back-office consolidation and savings on procurement, marketing and sales costs.
http://www.btplc.com/News/Articles/ShowArticle.cfm?ArticleID=C166A667-9C87-4128-8A2C-03E2DD8E017C
