Feeds

EE owners: Yeah, we're cool with things as they are... IPO? Nah, not really

Deutsche Telekom and Orange decide to hang onto Blighty's largest mobile operator

Providing a secure and efficient Helpdesk

The owners of Blighty's EE mobile operator have said that they're going to hang onto the company for now, delaying potential plans to float the firm or sell off their stakes.

Germany's Deutsche Telekom and France's Orange said they want to maintain the current management structure of the joint venture, which was created in 2010 when the Orange and T-Mobile brands merged.

"Deutsche Telekom and Orange have concluded the 2013 strategic asset review of EE and are very satisfied with EE's progress and financial performance under the leadership of CEO Olaf Swantee and his management team," the firms said in an emailed statement.

"The shareholders have both agreed that the best option for value creation is to maintain the current ownership structure for the time being, and they look forward to continuing their successful cooperation in the UK market."

Both firms had hinted at various points last year that they might think about selling off part of the firm or taking it through an IPO. In February, Orange's CFO Gervais Pellissier said:

We’re looking at putting a small part of EE, maybe 15 or 20 per cent, on the market at the end of 2013 or beginning of next year. Depending on British market conditions as well as EE’s first-half earnings, we’ll judge whether an IPO is fit.

Meanwhile, Deutsche said that it would prefer a partial listing of the company, which launched the first of the UK's 4G mobile networks in 2011.

The companies decided to shelve the IPO plans because they reckon that EE will be worth more when more Brits sign up to the 4G data packages, which have a higher profit margin for the firm than old 3G contracts, knowledgeable people told the Financial Times. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.