BT reportedly to make share placing to pay for EE

BT is planning to raise £2 billion through a share placing and a further £3 billion in new debt to finance its acquisition of EE from Deutsche Telekom and Orange, according to a report in the Telegraph newspaper.

According to the paper, BT is keen to keep its debt at a manageable level as it faces an anticipated bill for pension top funding and higher Premier League football rights costs next year.

According to the sources cited by the Telegraph, the bond issue is designed to win over shareholders who may resist dilution of their holdings.

BT is in exclusive talks with EE’s owners to buy the UK mobile outfit for around £12.5 billion, including £2 billion in existing debt. BT would fund the balance of the purchase price by handing over a 12% stake worth £4 billion to Deutsche Telekom, with Orange taking a 4% stake worth £2.7 billion.