EE puts in a call to BT
Mobile phone group EE has confirmed talks with BT about a potential £10billion tie-up to rival a possible £9billion takeover of O2.
BT are talking to O2 and EE about re-entering the mobile phone market
EE said its joint shareholders Deutsche Telekom of Germany and Orange of France were in early-stage discussions with BT which is also talking to O2 – owned by Spain’s Telefonica.
The mobile network operator said the talks were part of a regular review of its markets and strategic options to create more shareholder value and boost its market position.
It added: “As one of these options, Deutsche Telekom and Orange are in exploratory discussions with BT, although it is too early to state whether any transaction may occur.”
The talks are part of a review by BT of options to re-enter the mobile market following the 2001 demerger of its former BT Cellnet business, renamed as MMO2.
It is thought BT may offer £5billion cash plus around £3-4billion in shares to buy O2, giving Telefonica a 20 per cent stake in BT.
Industry chiefs predict takeovers and mergers in the sector as mobile phone firms and fixed-line broadband and TV operators target a presence in each other’s markets.