Altice ups stake in BT – but ‘does not intend’ to launch takeover bid
Altice, the French telecoms firm, will up its stake in BT to 24.5 per cent, but it “does not intend” to make a takeover bid.
The group owned by billionaire Patrick Drahi is BT’s largest shareholder, and said that it will acquire a further 650m shares, increasing its ownership to 2.5bn.
Its share price tumbled by 10 per cent on the announcement, but later stabilised.
Susannah Streeter, head of money and markets atHargreaves Lansdown said, “it seems clear that Altice is confident in the direction of travel for BT after it announced a drastic reduction in headcount to cut costs.
“This is a vote of confidence in BT’s prospects, with Altice supportive of the use of new technologies to streamline operations and create a leaner organisation.”
Drahi first purchased a 12 per cent, £2.2bn stake in BT in June 2021, following announcements that the telecoms company would invest £12bn to boost its fibre network in the UK.
Drahi increased this holding to 18 per cent later that year, which led to the UK government investigating the security implications of Altice’s stakehold in the British telecoms firm.
The investigation ultimately concluded that it would take no further action, with Drahi maintaining his stake in the firm.
Streeter added that the current level of investment was just under the level that could “prompt deep scrutiny under the National Security and Investment Act,” which requires an automatic review of any stake of more than 25 per cent held by a foreign entity in a company deemed significant for national security.
BT shares were up 0.45 per cent this morning after the announcement.