The UK, 27 July 2021: Telecoms giant in France, Altice, has acquired a substantial stake in BT. The 12% stake is far more than what would be considered a passive interest and share in the company. BT has vowed to install full-fibre broadband in 25 million homes by 2026. It’s worth remembering that another 12% of BT is owned by Deutsche Telekom and that stake has been sitting in Deutsche Telekom’s pension fund for the last decade.
Altice is owned by French-born Patrick Drahi who owns Sothebys. He also owns several businesses in the US, Israel and Portugal. Mr Drahi wants to work with BT but does not intend to bid for the company. Mr Drahi told BT chairman Jan du Plessis and BT chief executive Philip Jansen of the accumulation of the stake. Insiders for Mr Drahi say this is a vote of confidence in Mr Jansen and the company’s position for future fibre rollout.
The statement received read “We understand that the expansion of the broadband network is one of the UK government’s most important policy objectives and a core part of its levelling up agenda.” BT said: “We welcome all investors who recognise the long-term value of our business and the important role it plays in the UK.”
Altice insiders conceded that “this is not the same as Legal and General buying a stake in BT obviously. This buys us a conversation with the board to see what we might be able to do together.” The move follows a regulatory ruling over the rate of return BT and others are allowed to make on their fibre investments.
By: Jacqueline Freer-van Zyl
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