Shares in BT's mobile spin-off mmo2 have risen slightly during its first morning on the stock exchange.
The share price for the new FTSE 100 company, which was demerged this morning, initially fell slightly before rising nearly four per cent to 83.5p by noon GMT, up from its 80p debut, valuing mmo2 at just over £7.2bn.
Even though above market expectations, this price is considerably below the £9.2bn paid by BT for 3G mobile licences last year.
Meanwhile shares in BT, now divested of the division previously known as BT Cellnet and other mobile networks in Germany, the Netherlands and Ireland, rose sharply upwards from 278 to 292p by noon GMT.
While investors were today generally bullish, there are clouds on the horizon for mm02.
There is a possiblity that the company will fail to turn round the fortunes of its loss-making Viag German operation and become a takeover target. More immediately, analysts are warning that mobile sales may be quiet this year in the run-up to Christmas.
mm02 is now the third largest UK mobile operator behind Vodafone and Orange, and the sixth largest in Europe. Most investment advisors were this morning recommending 'buy' for mm02.
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