mmO2 to be spun away - official

NEWS Shareholders at BT have agreed to spin off the mmO2 mobile phone division with a resounding 75 per cent yes vote. At a ballot held today in Birmingham with 405 shareholders present, BT's plan to issue one mmO2 share for each of its on was approved and the company formally known as BT Wireless can run free. Proxy votes for the demerger hit 4.299 billion - just under half of all BT shareholders - against a puny 64m proxy votes against. The demerger required 75 per cent for to go ahead. As of 19 November the company will split into two separate organisations, mmO2 and BT Group that will control the mobile and fixed line businesses respectively. Analysts expect the company to be listed on the London stock exchange for around £5.9bn. mmO2 will list with a relatively minor debt of £500m that puts its bank balance among the healthiest of European telcos and it has already arranged a loan facility to develop its 2.5G and 3G networks, a spokesman said. However, this debt is expected to rise fast as the loan increases to support the belated entrance of 3G into the European market.