Reply to post:

BT to gobble EE for £12.5bn – BTEE phone home

Anonymous Coward
Anonymous Coward

"I don't want "synergies","

Then you're in luck, because there won't be any, and the actual impact is that BT have to recover more costs.

All those deal fees, legal costs, restructuring costs, and a particularly big and fat acquisition premium are going to create a huge slug of "goodwill" on the balance sheet that needs to be amortised away. The only way that will happen will be either for BT to take lower profits on EE than the current owners (which isn't going to happen), or for BT to increase the average revenue per user and the average margin per user to EE customers. That's what happened every time the UK cable companies got traded.

The BT fat cats can dress it up all they want, but there's a harsh reality to this sort of deal: Customer's get screwed while The City enjoy big bonuses.

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