EE Confirms Exploratory Talks With BT Group

(RTTNews) - EE Ltd., the UK's largest mobile operator, said Wednesday that its joint shareholders, Deutsche Telekom AG (DTEGY.PK) and Orange SA (ORAN), are in exploratory talks about a sale of the company to fixed-line operator BT Group plc. (BT_A.L, BT).

EE noted that Germany's Deutsche Telekom and French telecom giant Orange were analyzing various strategic options that have the potential to create value for EE's shareholders and also strengthen its market position. Further, EE said it was too early to state whether any transaction may occur, but added that Deutsche Telekom AG and Orange will make further announcements if and when required.

EE, which has about 15,000 employees and 580 retail stores, serves more than 30 million customers across its mobile, fixed and wholesale businesses.

According to EE, its 4G coverage today reaches 75 percent of the UK population, while its 2G coverage reaches 99 percent of the population and 3G reaches 98 percent of the population.

Meanwhile, BT Group, the UK's biggest fixed-line operator, said Monday that it has received expressions of interest from shareholders in two UK mobile network operators about a possible transaction in which BT would acquire their UK mobile business.

The company noted that one mobile network operator is Spanish telecom operator Telefonica S.A.'s (TDE.L, TEF) UK mobile business, Telefonica UK or O2. Media reports indicated that the other mobile network operator was EE.

According to BT Group, all discussions were at a highly preliminary stage and there can be no certainty that any transaction will occur.

BT Group, which is developing plans to provide enhanced mobile-phone services to business and consumer customers, is exploring ways to accelerate these plans. This includes assessing the merits of an acquisition of a mobile network operator in the UK.

BT closed Tuesday's trading at $62.21. In Wednesday's pre-market activity, the stock is up $2.30 or 3.70 percent to $64.51.