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(From Financial Director)
When BT spun off its mobile phone operation, mmO2, last November, it must have hoped the move would be good for both parties. And the early signs were encouraging. mmO2 shares rose 5% on their first trading day to 84p, while those of BT Group rose 4% to 290p.
Since then, the markets have not been so kind, although telecom shares in general have fallen out of favour. By early autumn, BT was languishing around 170p (having fallen as low as 154p), while mmO2 was hovering in the mid 40p range (having dipped to 37p). Had the whole demerger been a horrible mistake?
New research on demergers by Deloitte & Touche* suggests ...