Friday, May 26, 2006

Would DT Buy BT?

Ray Le Maistre writes on Light Reading:

BT Group plc's stock crept up nearly 1.5 percent Thursday as speculation hit London's trading floors that German giant Deutsche Telekom AG is lining up a takeover bid for the British incumbent.

BT's share price was also helped by news that, in partnership with BSkyB Group plc, the carrier has won the rights to show, from August 2007, time-delayed English Premiership League soccer games as part of its IPTV service, BT Vision, which is set to launch later this year.

But it was the link with Germany's incumbent, which only weeks ago announced its intention to "play an active role in the European consolidation process" and remain Europe's biggest carrier, that caught the eye.

The speculation was prompted by a report in German magazine Wirtschaftwoche that DT is considering such a bid. U.K. newspaper The Independent reported that traders in the City of London believe such a move is possible, but that DT would have to offer up to 300 pence per share, or £25 billion ($46.8 billion) in total, to stand a chance.

More here.


Post a Comment

<< Home