BT has entered exclusive talks over a £12.5 billion deal to buy Britain’s biggest mobile phone operator EE.
The disclosure comes after days of speculation over whether BT would opt to bid for O2 or rival EE, which is owned by Deutsche Telekom and Orange, as part of its long-awaited return to the mobile phone sector.
BT will begin several weeks of talks over the potential cash and shares deal worth £12.5 billion, a move which is set to result in Deutsche Telekom holding a 12% stake in BT and Orange taking a 4% stake.
O2, formerly known as BT Cellnet, was spun off from BT in 2001 before being bought by Spain’s Telefonica for £17.7 billion in 2005.
CONNECT WITH THE SCOTSMAN
• Subscribe to our daily newsletter (requires registration) and get the latest news, sport and business headlines delivered to your inbox every morning