EE will make BT a market leader in the UK 4G mobile market…

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 Telekom 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.

The deal combines BT’s 10 million retail customers and EE’ 24.5 million direct mobile subscribers.

BT’s shares rose almost 5% to their highest level since 2001, the year the company withdrew from mobile operations by selling O2.

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.”

 

[via BBC]