Investors eyeing VM/EE tie up - rumour
# Jun 20, 10:11 AM by Chris T
Stock market gossips are abuzz with a rumour – given credence by a report in the Sunday Times – that a consortium of venture capitalists poised to back an attempt to buy the mobile phone network giant Everything Everywhere, are also poised to try to land Cableco Virgin Media.
Such an undertaking would be vast in both scope and cost. Everything Everywhere (EE), a joint venture between Deutsche Telekom and France Telecom allowing them to operate their UK mobile phone interests as a single operation, has been valued at Â£8 billion all by itself.
That’s the price named by a consortium led by EE’s former CEO Tom Alexander for the company, which operates the Orange and T-Mobile brands in the UK.
He is backed by private equity firms Apax and KKR, which would need to find an additional Â£4 billion if they wished to add VM to their haul, as the Sunday Times has claimed.
Virgin Media is not believed to have been approached over any possible takeover.