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(Alliance News) - Billionaire telecom tycoon Patrick Drahi lifted his stake in BT to 18% on Monday from 12% but confirmed on Tuesday he has no plans to make a takeover offer for BT.
Drahi's Altice UK bought a further 585.5 million BT shares on Monday, raising its holding to 1.8 million shares, an 18.0% stake. The company "restated its position to the board" that it doesn't intend to make an offer and will be bound by that statement under UK takeover rules.
Drahi said he holds BT's management in "high regard".
"We are pleased to take this opportunity to increase our shareholding in BT. Over recent months we have engaged constructively with the board and management of BT and look forward to continuing that dialogue," Drahi said.
He added that he supports BT's strategy of rolling out full-fibre broadband in the UK.
In response, BT said: "The board and management of BT Group will continue to operate the business in the interest of all shareholders and remains focussed on the successful execution of its strategy and building on recent performance momentum."
BT shares were down 4.8% early Tuesday, while the wider FTSE 100 was higher.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.6% at 7,276.21
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Hang Seng: down 1.5% at 23,603.74
Nikkei 225: closed down 0.7% at 28,432.64
S&P/ASX 200: closed down marginally at 7,378.40
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DJIA: closed down 320.04 points, or 0.9%, at 35,650.95
S&P 500: closed down 43.05 points, or 0.9%, at 4,668.97
Nasdaq Composite: closed down 217.32 points, or 1.4%, at 15,413.28
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EUR: down at USD1.1273 (USD1.1283)
GBP: down at USD1.3200 (USD1.3230)
USD: up at JPY113.70 (JPY113.50)
Gold: down at USD1,784.48 per ounce (USD1,788.71)
Oil (Brent): down at USD74.60 a barrel (USD75.05)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Tuesday's key economic events still to come
US Federal Open Market Committee meeting starts.
1000 CET Germany Ifo economic forecast winter report
1100 CET EU industrial production
0830 EST US producer price index
1630 EST US API weekly statistical bulletin
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The UK unemployment rate edged lower in October, moving closer to pre-virus levels. Figures from the Office for National Statistics showed the UK unemployment rate was reduced to 4.2% in the three months to October, having sat at 4.3% in September. The October figure came in line with market consensus cited by FXStreet. The UK jobless rate is now just 0.2 percentage point higher than it was before the pandemic. October's labour force survey came shortly after the end of the UK's furlough scheme on September 30, the ONS explained. Over the same three-month period to October, annual growth in average total pay - which includes bonuses - was 4.9%, while regular pay, which strips out bonuses, was 4.3%.
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UK Prime Minister Boris Johnson is facing the biggest rebellion of his premiership, with dozens of Tory MPs set to vote against the latest Covid restrictions. More than 70 backbenchers are threatening to defy the whips and oppose the government's Plan B for England, introduced in the face of the fast-spreading Omicron variant. It is reported that up to 10 ministerial aides could resign to oppose the controls, with up to four votes on the measures expected to take place on Tuesday evening. The measures – including Covid passes for entry into nightclubs and other venues – are expected to pass the Commons with the support of Labour, who back tighter controls.
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China's economically important Zhejiang province wrestled on Tuesday with a Covid outbreak that has left half a million people quarantined and some districts under business shutdown. Zhejiang, a major industrial and export hub on the country's east coast, reported 44 of China's 51 domestically transmitted coronavirus cases on Tuesday, bringing the total since late last week to nearly 200. Although Chinese case counts are miniscule compared to other major economies, officials in Zhejiang have employed the country's signature mass testing blitz and targeted lockdowns with concern high over fresh outbreaks as Beijing gears up to host the Winter Olympics in February. More than 540,000 people have been put in quarantine in Zhejiang, officials have said.
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Japan's industrial production rose in October, showing the first increase since July, thanks to a strong month for shipments, data from the Ministry of Economy, Trade & Industry showed. On a monthly basis, industrial production increased 1.8% in October, driven by 2.4% growth in shipments. This compares to a flash reading of 1.1% growth and follows a 5.4% decline in September. It was the first growth in industrial production since June and was credited to an easing of supply constraints for automakers and other export-reliant industries. On a yearly basis, industrial output still was down 4.1% after a 2.3% fall in September, making it the second straight month of annual decline.
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The US is preparing "alternatives" with allies in case talks on reviving a deal to curb Iran's nuclear ambitions fail, Secretary of State Antony Blinken said. "We continue in this hour, on this day, to pursue diplomacy because it remains at this moment the best option, but we are actively engaging with allies and partners on alternatives," he said during a visit to Indonesia.
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BROKER RATING CHANGES
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JPMORGAN RAISES EXPERIAN TO 'ANALYST FOCUS LIST'
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JPMORGAN CUTS BAE SYSTEMS TO 'UNDERWEIGHT' (NEUTRAL) - PRICE TARGET 555 (645) PENCE
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JPMORGAN CUTS QINETIQ TO 'UNDERWEIGHT' (NEUTRAL) - PRICE TARGET 260 (320) PENCE
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COMPANIES - FTSE 100
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Ocado is looking forward to a busy festive period, with the grocer also boosted by a legal victory. A US International Trade Commission patent case verdict, delivered on Monday, "has found in favour of Ocado", the company said. The dispute was with Norwegian firm Autostore. In October of last year, Autostore had said it sued and already filed complaints in the US and the UK. Autostore accused Ocado's Smart Platform of infringing Autostore's patented technology. Ocado Smart Platform is a storage and picking system used in fulfilment centres. Autostore's system is also used in warehouses. A judge found that three of four Autostore patents are invalid, while a fourth has not been infringed. Ocado said its continues to pursue its own claims against AutoStore for infringement of Ocado's patents. On the trading front, Ocado Retail, its joint venture with Marks & Spencer, is set for its "best-ever Christmas ahead". In the fourth quarter ended November 28, retail revenue fell 3.9% annually to GBP547.8 million, though this was up 32% from 2019. Typical shopping baskets are getting smaller. While average orders per week increased 9% annually, order value fell 12%. Ocado expects the M&S partnership's annual performance to be in line with guidance. For financial 2022, it expects revenue growth at the top of the pre-virus range of 10% to 15%.
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COMPANIES - FTSE 250
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Drax said its Pinnacle Renewable Energy unit has taken on a bumper biomass supply deal. Drax said Pinnacle has acquired Pacific BioEnergy's pellet sales contract book, adding 2.8 million tonnes of orders for sustainable biomass supply to third-party customers in Japan and Europe. The contracts are for delivery between 2022 and 2030, with total incremental revenue over the period at CAD675 million, just shy of GBP400 million. Drax is a power generator that uses biomass in its own furnaces and also sells it to third-parties.
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COMPANIES - GLOBAL
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Woodside Petroleum has hired BHP's Graham Tiver as chief financial officer. Tiver joins the Perth-based petroleum exploration and production company from BHP, where he held the role of group financial controller with responsibility for the Melbourne-based miner's global accounting and reporting function and financial improvement. BHP is in the process of merging its petroleum business with Woodside. The all-stock deal will see Woodside shareholders take 52% of the new company and BHP shareholders 48%. Completion is targeted for the second quarter of 2022.
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Tuesday's shareholder meetings
Aeorema Communications PLC - AGM
BATM Advanced Communications Ltd - AGM
Blancco Technology Group PLC - AGM
CQS Natural Resources Growth & Income PLC - AGM
Fidelity Special Values PLC - AGM
Greatland Gold PLC - AGM
Invinity Energy Systems PLC - GM re placing, open offer
Kin & Carta PLC - AGM
Marwyn Value Investors Ltd - AGM
MC Mining Ltd - AGM
Target Healthcare REIT PLC - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
