France Telecom (FT) chief executive Stephane Richard has reaffirmed that it and its UK joint venture partner Deutsche Telekom (DT) do not intend to sell Everything Everywhere (EE).
Richard told journalists at a conference in Marseille that both telcos…
France Telecom (FT) chief executive Stephane Richard has reaffirmed that it and its UK joint venture partner Deutsche Telekom (DT) do not intend to sell Everything Everywhere (EE).
Richard told journalists at a conference in Marseille that both telcos are happy with the JV and don’t wish to sell, although they would look at sensible offers, Reuters reported. Richard was also quoted as saying both FT and DT have enough cash to invest in EE, which is now Britain’s largest mobile operator with more than 27 million customers.
Reports last weekend said that former EE CEO Tom Alexander has been in talks with private equity firms including KKR and Apax to acquire the unit for about £8bn (US$12.5bn). Other scenarios suggested that Alexander might acquire DT’s 50% stake, while FT would stay invested in the JV.
An FT spokesperson had said on Monday (18 June) that “no offer from a third party to acquire the business in the UK has been received nor has one been invited. EE is a strong business with a clear leadership position in the UK market and its shareholders are 100% supportive of the group, its management and its strategy.”
EE was formed in 2010 when FT and DT combined their UK subsidiaries, Orange and T-Mobile, respectively.
Last week, FT CFO Gervais Pellisier told delegates at a conference that the group might consider floating a stake in EE as it starts to generate synergies from the 2010 merger. However, he stressed that both FT and DT would want to keep control of the group.
Today, EE announced its board has approved an extra £250m (US$391.2m) dividend payment to FT and DT which it will fund with available liquidity. The operator said it will still have sufficient funds to meet its financial obligations and stick to its investment programme.
