BT's £500m advice bill for demerger

12 April 2012

THE demerger of mm02 was one of a number of deals done by BT that showered riches on its advisers.

BT's total bill for merchant bankers, lawyers, management consultants and other advisers on deals and fundraising in the past three years is approaching £500 million. This is equivalent to more than £200 for every BT shareholder - or £14 for each of the company's 28.4 million phone lines.

The bonanza culminated last year in BT's record-breaking £5.9 billion rescue rights issue and the mm02 demerger. Fees relating to these alone totalled £136 million. Other transactions included selling directories business Yell and unwinding the disastrous Concert joint venture with AT&T.

The company has been involved in 112 acquisitions and disposals.

Among the banks to profit from BT's activity are NM Rothschild, Morgan Stanley, Merrill Lynch, Cazenove and Schroder Smith Salomon Barney.

Shareholders have seen BT's value plummet from a peak of £90 billion two years ago to just over £20 billion today.

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