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BT is planning a £2 billion rights issue as it puts together a huge financial package to secure the acquisition of 4G broadband provider EE.

The former national telecoms operator has entered into exclusive talks to buy out EE - which is jointly owned by Orange and T-Mobile's parent company Deutsche Telekom.

BT is expected to pay around £12.5 billion for the company in total, while assuming £2 billion of EE's own debts.

According to the Telegraph, a number of BT's leading investors have said they will support a share issue in order to complete the deal.

BT is also expecting to raise approximately £3 billion in the bond markets, leaving it with around £10 billion to find.

Analysts at Jefferies said a £2 billion rights issue will see shareholders suffer a four per cent dip in earnings per share in the first year following a takeover.

However, they believe that by 2019, BT's presence in the mobile market should deliver an additional seven per cent in earnings per share.

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