French billionaire Patrick Drahi accumulates 18% stake in BT

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Patrick Drahi, president of the French telecommunications and media group Altice, smiles when the Altice Campus opens in Paris on October 9, 2018.

Eric Piermont | AFP | Getty Images

London — French billionaire Patrick Drahi increases stake in British telecommunications company BT, In the midst of concerns about a full-scale acquisition, evoked a reaction from the British government.

BT said it has notified the board of directors that Drahi’s telecommunications group Altice has increased ownership of BT from 12.1% to 18%.

BT’s share fell 6% on Tuesday morning.

“The BT Group’s board of directors and management will continue to operate the business for the benefit of all shareholders and continue to focus on strategic success and building momentum for recent performance,” BT said in a statement Tuesday. rice field.

BT is a symbolic company in British corporate history, dating back to the founding of the world’s first public telegraph company in 1846. The company was formerly state-owned, but was privatized by the end of the 20th century.

In recent years, BT has struggled to convince investors of its vision of upgrading its domestic network infrastructure and becoming a major player in the transition to the next-generation 5G mobile Internet. Shares of £ 16.3 billion ($ 21.6 billion) companies have fallen by about 55% over the last five years.

It was Drahi Born in Morocco, but moved to France as a teenager, According to Forbes, founded Altice in 2001.

He surprised the telecommunications industry in June when his company paid £ 2.2 billion for a 12.1% stake in BT. His interest in BT has fueled concerns about the possibility of a complete acquisition of the company.

Entrepreneurs were prevented from pursuing further stake in BT until December 11 by UK takeover rules. On Tuesday, Altice said it did not intend to buy BT, but this could change under certain circumstances, including if a third party makes an offer.

In a statement, Dry said his company was “constructively involved” with BT’s board and management and “we look forward to continuing that dialogue.”

“We will continue to appreciate them and continue to fully support their strategy, primarily to play a vital role in achieving increased access to full-fiber broadband networks,” Drahi said. Mr. says.

The news that Dry has increased its stake in BT triggered a reaction from the government of British Prime Minister Boris Johnson on Tuesday. In a brief statement, a government spokesman said, “We are closely monitoring the situation.”

“The government has promised to upgrade the country through digital infrastructure and will not hesitate to act when necessary to protect the telecommunications infrastructure of critical countries,” a spokesman said.

The UK will enact a new law in January 2022, empowering the UK to intervene in acquisitions that raise national security concerns.

The government is already in Nvidia Acquisition of chip designer Arm When Acquisition of Britain’s Largest Chip Producer by a Chinese-owned Company..

Other potential buyers are rumored to be considering a bid to buy BT. Reliance Industries, an Indian multinational conglomerate, recently denied reports from The Economic Times that it was considering an offer to the company.

French billionaire Patrick Drahi accumulates 18% stake in BT

Source link French billionaire Patrick Drahi accumulates 18% stake in BT

The post French billionaire Patrick Drahi accumulates 18% stake in BT appeared first on Eminetra.

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