BT steps up takeover defence after share price halves
Bosses at telecoms giant BT have taken steps to bolster its defences against a potential takeover after a plunge in its share price.
According to Sky News, the firm, which is now valued at £10.1bn, has told Goldman Sachs to update its strategy for defending BT from such a move.
The plans may also involve boutique investment bank Robey Warshaw, a long-term adviser to fellow telecoms giant Vodafone, insiders told Sky.
As markets closed on Friday BT’s share price stood at 101.8p, 48 per cent down on where it started the year.
Despite the FTSE 100 picking up some 20 per cent since March, BT has in the same period slumped a further 13.5 per cent.
A formal bid for the firm has yet to emerge, but any such move could have huge political ramifications, given BT’s existing commitments.
Thus far, the firm has agreed to £12bn in investment to roll out superfast broadband to 20m households in Britain by the end of the decade.
It also has a key role in building the UK’s 5G network, from which Chinese telecoms firm Huawei was banned last month.
The firm has set aside £500m to strip Huawei’s technology from existing 5G networks by 2027, after the government changed its position over national security concerns.
According to analyst, Deutsche Telecom, which already owns 12 per cent of the company, could be a potential candidate for a takeover approach.
Last month, BT warned that the pandemic would trigger sharp falls in revenues and profits for the full year, with the dearth of sport during the lockdown and reduced activity from business customers impairing its performance.
Morning Wire has contacted BT for comment.