UK government would block Indian billionaire from lifting stake in BT - report

(Sharecast News) - Shares of BT Group slumped on Thursday following a report the UK government would oppose any attempt from Indian billionaire Sunil Bharti Mittal to increase his stake in the telecoms group.

Speaking to the Financial Times, people familiar with the matter cited the need to maintain sovereign control over "critical national infrastructure".

The stance will limit the Indian billionaire's influence over BT, whose broadband infrastructure arm Openreach provides fibre broadband to more than 22mn homes in Britain. Mittal's Bharti Enterprises conglomerate bought a 24.5% stake in BT in 2024 from French billionaire Patrick Drahi, and has now moved to 24.95%. It would require government approval to go above the 25% threshold.

According to the FT, British officials have made clear they would look to block such a move.

"It's not to do with Bharti or India specifically, it's a matter of keeping critical national infrastructure in sovereign UK control for obvious reasons," said one British government figure. "It's important the market knows this isn't personal, but resilience and sovereign capability have a different threshold in today's world than for generations."

They added that in general the UK government seeks to make its position clear to valued overseas investors in anticipation of possible future investments in order to avoid embarrassment.

Any attempt by Bharti to increase its stake above 25% would trigger a formal review under the National Security and Investment Act.

Since buying his stake in 2024, Mittal has enjoyed a close relationship with BT chief executive Allison Kirkby, with whom he has held several strategy meetings, the FT said. Last year, he secured two board seats.

People familiar with the position of BT's board in recent months told the FT that while Mittal had given directors the impression he had no immediate intention to increase his stake, they noted his ambitions for both the company and his own investment in the UK telecom operator.

At 0940 BST, the shares were down 3.2% at 210.05p.