15:29 05 February 2015
Telecoms group BT has bought mobile operator EE in a £12.5bn deal, claiming all of EE shares currently held by Orange and Deutsche Telekom.
While Deutsche Telekom will receive 12% and have a seat on the board, Orange will receive a smaller 4% stake, as well as around £3.4bn in cash.
The takeover creates a communications giant covering fixed-line phones, broadband, mobile, and TV. The deal also pushed BT’s share by 5%, the highest jump since 2001 when it sold off its old mobile operation O2.
However, rivals TalkTalk and Vodafone asked competition authorities to step in and force BT to spin off its Openreach operation.
In a statement, BT said: "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 added that the deal would mean saving £360m a year in terms of operating costs and capital investment.
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."