Feeds

mmO2 dials up change for small investors

Plans to change name too

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

mmO2 is looking to buy out thousands of small shareholders. Staying in touch with so many shareholders is too costly, the cellco says.

Following its spin-off from BT in November 2001, mmO2 has more than a million shareholders who own fewer that 600 shares each. While these 1.04m investors represent 63 per cent of the company's total number of shareholders, they only account for 3.5 per cent of the company.

"The cost of servicing such a large number of shareholders is significant. In many cases it is likely to cost O2 more to send dividend cheques to its small shareholders than the amount of the dividend they are receiving," said mmO2 in a statement today.

In the shake-up, mmO2 is to be acquired by a new company, O2 plc. Shareholders can either opt to exchange their mmO2 shares for O2 plc shares or cash in their small share in the company.

If all goes to plan, shares in mmO2 will cease to be traded on the London Stock Exchange on 11 March and begin trading as O2 plc on 14 March. ®

Related stories

O2 falls for Blackberry 'Charm'
O2 unveils compact PocketPC phone
mmO2 hikes 3G speeds
O2 to bring i-mode to UK in 2005

Protecting against web application threats using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
'Serious flaws in the Vertigan report' says broadband boffin
Report 'fails reality test' , is 'simply wrong' and offers ''convenient' justification for FTTN says Rod Tucker
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.