Categories: MobilityWorkspace

Deutsche Telekom And France Telecom Hire Banks For EE IPO – Report

Mobile operator EE could be set for an initial public offering (IPO) after its parent companies Deutsche Telekom and France Telecom both chose banks to advise them on such a plan, according to Reuters.

France Telecom has apparently enlisted the support for Morgan Stanley and Bank of America Merrill Lynch, while Deutsche Telekom is expected to hire JP Morgan, given the two worked together when the EE joint-venture was formed by the merger of T-Mobile and Orange in 2010.

EE IPO possible

Both Deutsche Telekom and France Telecom own half of the business each, but last year said they were conducting a strategic review, with an IPO the preferred option in moving forward.

The former is apparently more willing to listen to offers, although both would welcome the money given the need to invest in next-generation fixed and mobile networks. In any case, many analysts see the joint-venture as short-term.

Former boss Tom Alexander has been in talks with private equity groups about a possible bid, while US telecommunications company AT&T has also been linked with a bid as it seeks to expand into Europe.

KKR and CBC Capital Partners have also reportedly been in discussions with banks to raise money for a potential £9 billion buyout of EE, but any takeover bid would be ambitious given the size of the business.

EE currently has 27 million customers and is the largest mobile operator in the UK in terms of subscribers. It also currently operates the UK’s only 4G service, adding 201,000 new customers since it launched last October. However, in its most recent results, it also posted a £191 loss in 2012.

Do you have superfast broadband? Check it with our Speed Test!

Are you up to speed on 4G? Try our quiz!

Steve McCaskill

Steve McCaskill is editor of TechWeekEurope and ChannelBiz. He joined as a reporter in 2011 and covers all areas of IT, with a particular interest in telecommunications, mobile and networking, along with sports technology.

Recent Posts

Patient Dies In Germany After Hospital Ransomware Attack

Real world consequence of ransomware attacks. A female patient has died as a result of…

56 mins ago

Tesla Driver Charged For Sleeping As Car Drove At 90mph

Unbelievable! Driver in Canada charged with dangerous driving, after he slept in fully reclined seat…

2 hours ago

ByteDance Majority Stake Puts Oracle-TikTok Deal At Risk – Report

Plan to keep majority stake in TikTok, will hinder White House approval reports suggest, as…

21 hours ago

Nintendo Shuts the Lid On 3DS

Nearly a decade after it first launched, Japanese gaming giant Nintendo discontinues its popular 3DS…

22 hours ago

Aussie Regulator Refuses To Back Down After Facebook News Warning

Blunt warning from Facebook about blocking news sharing down under, receives equally blunt response from…

23 hours ago

Academic Sector Warned Of Cyber Threat By NCSC

Universities and schools are being warned by UK's cyber guardian of threats posed to their…

24 hours ago