2023-05-23 10:30:00
Almost two years following entering the capital of BT, Patrick Drahi is increasing his stake. Altice UK, a company he founded and wholly owns, announces “raise its shareholding (…) to approximately 24.5% of the capital” of BT, according to a statement, up from 18% so far.
The document also states that “Altice UK has reaffirmed its position to the BT board that it does not intend to make a bid” for the group. Except in certain specific cases, such as “with the agreement or recommendation of the CA (board of directors, editor’s note) of BT” or in the event of an offer from a third party on the telecommunications group, continues the press release. Following this announcement, the action of BT lost 0.41% to 147.25 pence on the London Stock Exchange shortly following 08:30 GMT.
Complicated period for BT
As a reminder, the increase in the capital of BT by Patrick Drahi, who became its largest shareholder in June 2021 with 12.1% of the capital before increasing his participation shortly following to 18%, had worried the political class across the Channel, once morest a background speculation regarding a possible takeover. London indicated last year that it was studying the impact on national security of this stake in the operator. The British government had finally decided not to oppose it.
BT saw its turnover decrease by 1% to 20.7 billion pounds (23.77 billion euros) for its financial year ended at the end of March, despite a 4% increase for its subsidiary Openreach, responsible for deploying the fiber in the UK. Its net profit rose sharply by 50%, thanks to an exceptional tax credit linked in part to the sale of BT Sports, as part of a joint venture with Warner Bros Discovery. Its pre-tax profit fell by 12% to 1.7 billion pounds (1.95 billion euros).
Up to 55,000 jobs cut
BT clarified last week that its cost reduction plan, implemented since April 2020, is on track “with gross savings of 2.1 billion pounds” (2.41 billion euros). It must allow it to approach its objective of 3 billion pounds. Savings that will be accompanied by many job cuts. BT will indeed cut up to 55,000 jobs by 2030. This represents up to 42% of the 130,000 people employed by the group, directly or through intermediaries. The operator wants to rely on “a much smaller workforce”.
BT is not the only operator to find it necessary to cut costs by cutting staff. Also last week, Vodafone, another British group, announced a similar measure. It plans to cut 11,000 jobs over three years as part of a restructuring plan to ” to regain [sa] competitiveness”.
(With AFP)
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