BT launched a £1 billion placing today to whip up cash for its acquisition of EE.
The new shares, representing about 3 percent of those currently issued, will be offered at 5p with JP Morgan, Merrill Lynch and Goldman Sachs operating as bookrunners.
The capital will help fund the acquisition of EE, announced earlier this month, although BT stipulated that the placing was not conditional on the completion of the acquisition. If it does not go ahead, the proceeds will be retained by the company for other purposes.
These might include the hefty £960 million that BT will be paying out over the next three years for the rights to live Premier League matches. The telecoms provider also holds substantial unfunded pension liabilities.
BT’s acquisition of EE will allow it to take on the lucrative quad-play market of landline, TV, mobile and broadband.
