1/17/2014 11:24:16 AM
Deutsche Telekom and Orange put brakes on EE float
Deutsche Telekom and Orange have decided to put plans on hold to sell shares in joint venture EE.
According to the Financial Times, the operators had been working to sell parts of the UK's largest network for over a year. It is believed Orange and Deutsche Telekom are holding out for EE to sign up more 4G subscribers, thus increasing value, although Financial Times' sources suggest that some investors remain to be convinced that EE will hold onto its LTE market lead.
EE announced at the beginning of the year that it had signed up 2 million 4G subscribers, double what it was expecting at this stage. Since its 4G proposition went live in October 2012, 160 towns have been turned on to the ultrafast network.
A joint Deutsche Telekon and Orange statement said: ‘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. Following this review, 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.’