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BT prepares to fend off takeover bids as shares slump

BT boss Philip Jansen - Hollie Adams /Bloomberg 
BT boss Philip Jansen - Hollie Adams /Bloomberg

BT is bolstering its defences against a potential takeover bid amid a slump in its shares that is stoking interest from private equity predators.

The FTSE 100 telecoms giant has asked Goldman Sachs to update its defence strategy, and may also call on advice from the boutique bank Robey Warsaw, Sky News reported.

Private equity firms are said to be exploring the possibility of a joint bid for the company, although BT has not received any formal approach, the report said.

Its shares have fallen 57pc since the start of 2019 to 101.8p, weighed down by the cost of its national fibre broadband roll-out and a fall in income.

Markets Hub - BT Group
Markets Hub - BT Group

It suspended its annual dividend this year for the first time since privatisation, and now has a market value of just £10.1bn – about half the estimated value of its infrastructure assets.

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A takeover attempt would be politically sensitive given BT’s role in the UK’s high-fibre broadband infrastructure and in the 5G network.

In June, The Sunday Telegraph revealed that Saudi Arabia was buying up BT shares on the open market, having held talks with BT in April about a potential share issue to help fund the broadband roll-out.

BT decided not to go ahead, but suggested it would welcome a new long-term investor.

BT said last month it expects revenue for the year to March 2021 to fall by 5-6pc.