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| Version 1 | Version 2 |
|---|---|
| BT to buy mobile firm EE for £12.5bn | BT to buy mobile firm EE for £12.5bn |
| (about 1 hour later) | |
| Telecoms group BT has bought the mobile operator EE for £12.5bn. | Telecoms group BT has bought the mobile operator EE for £12.5bn. |
| The takeover creates a communications giant covering fixed-line phones, broadband, mobile and TV. Existing EE shareholders Orange and Deutsche Telekom will sell 100% of their shares. | The takeover creates a communications giant covering fixed-line phones, broadband, mobile and TV. Existing EE shareholders Orange and Deutsche Telekom will sell 100% of their shares. |
| Deutsche Telecom will hold 12% in the new combined business and have a seat on the board. | Deutsche Telecom will hold 12% in the new combined business and have a seat on the board. |
| Orange will receive a 4% stake, as well as about £3.4bn in cash. | Orange will receive a 4% stake, as well as about £3.4bn in cash. |
| BT says it plans to raise £1bn through a placing of new shares to fund the deal. | BT says it plans to raise £1bn through a placing of new shares to fund the deal. |
| It said in a statement: "The combination of EE and BT will provide customers with innovative, seamless services that combine the power of fibre broadband with wi-fi and advanced mobile capabilities. | It said in a statement: "The combination of EE and BT will provide customers with innovative, seamless services that combine the power of fibre broadband with wi-fi and advanced mobile capabilities. |
| Savings and revenues | Savings and revenues |
| EE leads the market in 4G, the fastest mobile bandwidth. It said on Thursday said its 4G customer base had risen to 7.7 million subscribers. | EE leads the market in 4G, the fastest mobile bandwidth. It said on Thursday said its 4G customer base had risen to 7.7 million subscribers. |
| BT says that within four years, the deal will be saving it £360m a year in terms of operating costs and capital investment. | BT says that within four years, the deal will be saving it £360m a year in terms of operating costs and capital investment. |
| It added that by combining the two businesses, it should be able to generate an extra £1.6bn a year in sales. | It added that by combining the two businesses, it should be able to generate an extra £1.6bn a year in sales. |
| BT chief executive Gavin Patterson said: "This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them." | |
| He said the money being spent on the deal did not affect its plans ahead of the multi-billion pound Premier League rights auction, where it is in tough competition with rival Sky. | |
| BT shares rose more than 2.5% on the London market, making the firm the top gainer on the FTSE 100 index. | |
| Consolidation | |
| The mobile phone market is expected to consolidate further. Hutchison Whampoa, which owns rival Three, is said to be in talks to buy O2. | |
| There has been speculation that Virgin may tie up with Vodafone. | |
| And Sky has also announced the launch of its own mobile service, through a deal with O2's network. | |
| The BT-EE deal is expected to be finalised by March next year, subject to approval by shareholders of BT and scrutiny from the Competition and Markets Authority. |