Major Procurement Savings for BT from EE Merger...
BT say that Procurement will contribute to annual savings of £70 million as part of BT’s deal to buy mobile network EE. In this latest article from Supply Management. BT said consolidating sales and marketing operations and procurement efficiencies would generate the savings, while insourcing will contribute to further savings of £90 million in IT and £80 million of efficiencies from network integration. BT expects the acquisition to deliver total savings of around £360 million a year.According to Christopher Williams the Telegrap's Technology, Media and Telecoms Editor many investors were betting that the £360m per year cost reduction is a concervative figure. Williams says "The positive reaction from investors to the news BT had agreed final terms with Deutsche Telekom and Orange, EE’s joint owners, provided more evidence supporting the strategy. The shares rose 4.5pc to their highest point in 14 years. Many investors were betting that the £360m per year cost cuts BT said they will achieve in four years is a lowball figure".
Some interesting comments on the BT/EE deal.... if you'd like to read more.