BT 2001 Annual Report Download - page 94

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16. Acquisitions and disposals (continued)
(a) On 20 February 2001, the group took full control of Viag Interkom GmbH & Co (Viag Interkom). Under an agreement
announced in August 2000, the group purchased from E.ON its 45% interest in Viag Interkom by means of a put option priced at
k7.25 billion (£4,562 million). In January 2001, the group acquired the 10% interest in the company previously owned by
Telenor for k1.6 billion (£1,032 million). As part of the transactions, the group repaid loans due by Viag Interkom to E.ON
and Telenor totalling £3,165 million. The total cash consideration amounted to £8,770 million, including £11 million expenses.
Book and fair
values
£m
Fixed assets 6,728
Current assets 619
Current liabilities (585)
Long-term liabilities (2,505)
Group’s share of original book value of net assets 4,257
Goodwill 4,992
Total cost 9,249
Consideration:
Cash 8,770
Carrying value of joint venture wholly acquired 479
Total 9,249
Since the acquisition was made towards the end of the year ended 31 March 2001, the fair values of the identi¢able assets and
liabilities have been determined on a provisional basis. Goodwill arising on acquisition of Viag Interkom is being amortised over
20 years.
The consolidated results of Viag Interkom for the year ended 31 December 2000 and for the period from 1 January 2001 to
19 February 2001, on the basis of its accounting policies, are summarised as follows:
Period
1 January to
19 February
2001
£m
Year ended
31 December
2000
£m
Group turnover 216 856
Total operating loss (108) (686)
Loss before taxation (160) (784)
Taxation ––
Minority interests ––
Loss for the financial period (160) (784)
Notes to the financial statements
94 BT Annual report and Form 20-F