BT paying "hefty" price for EE takeover, says Deutsche Bank

BT's £12.5bn offer for UK mobile network operator EE was "more expensive than expected", according to Deutsche Bank which kept its 'hold' rating on the telecoms giant."After some serious speed dating, BT is now going steady with EE which is 50/50 owned by Orange and Deutsche Telekom (DT)," said analysts Robert Grindle and Keval Khiroya from the German bank.BT said the deal would be payable in cash and shares, giving DT a 12% stake and Orange a 4% interest.With the valuation higher than the rumoured £10.5bn-11bn price tag, the analysts pointed out that BT would be paying a "hefty" 7.9 times operating profits for the company.Griddle and Khiroya said that any potential interference in the combined business going forward from DT and Orange is likely to be limited.They said that DT is "subject to a multi-year standstill on any move to exert greater control and likely subject to the usual protocols on any exit". Meanwhile, Orange is "more likely to wash its hands of the amalgamation shortly after its consummation (none-too hastily as to cast a shadow over the celebrations)"."While the synergies from the deal are yet unknown, the analysts predicted that they "could be substantial"."We worry however that annoying and rowdy neighbours [...] may encroach on domestic harmony, potentially even before the cake is actually cut," they concluded.BT's share price was up 1.5% at 403.8p by 09:35.