BT to buy EE?
As we've previously touched on, BT have money burning a hole in their pocket and they want to buy something with it, fast. The telco have entered exclusive talks with the owners of EE for a potential £12.5 billion deal.
If it goes ahead, it will give BT the top slot in mobile as well as fixed line services.
BT had been chatting with Telefonica over purchasing O2, however it seems things have moved on and BT now expects further negotiations with EE's owners to take several weeks to reach a definitive agreement.
If it does happen, BT will pay for EE using half cash and half shares to make the 12.5 billion price tag. Deutsche Telekom will get a 12% stake in BT and the right to appoint one board member while France's Orange will get more cash and only a 4% stake in BT.
Recent valuations have had EE last month at nearer £11 billion pounds, and O2 at £9.4 billion. However, combining the whole thing could face higher regulatory hurdles than a deal for Telefonica's O2.
According to Deutsche Telekom's chief executive Tim Hoettges: "If no significant obstacles arise in the due diligence process, it will pass quickly".
BT have chipped in by saying that buying the UK's biggest mobile network would allow it to give their customers seamless access to the internet via wi-fi and fibre broadband.
We'll just have to wait and see what happens.