(Adds details, comments from BT and a source close to
Macquarie)
May 14 (Reuters) - BT Group Plc is in talks to sell a
multi-billion pound stake in its wholly-owned network subsidiary
Openreach to infrastructure investors to help fund an ambitious
expansion in fibre broadband, the Financial Times reported on
Thursday.
The FT said potential investors, including Australian
investment firm Macquarie Group Ltd and a sovereign
wealth fund, had held talks in the last three weeks with the
former telecoms monopoly.
Macquarie, however, was not interested in a deal, a source
close to the investment firm told Reuters.
BT declined to comment on the FT report.
Upgrading Britain's broadband network is the centerpiece of
Chief Executive Philip Jansen's strategy for the BT, but rolling
out the fibre connections to 20 million premises by the mid to
late 2020s will cost 12 billion pounds ($15 billion).
Shares in BT fell to 11-year lows, giving it a market
capitalisation of 10 billion pounds, after the company cancelled
its divided a week ago to help weather the economic impact of
the coronavirus.
Jansen said the pandemic, which has seen a surge in the use
of mobile phones and data, had made the network upgrade "a
matter of extreme urgency".
He said he was confident BT would strike a deal with the
government and regulator to underpin the rate of return on the
investment required for the plan.
($1 = 0.8201 pounds)
(Reporting by Aakriti Bhalla in Bengaluru and Paul Sandle and
Pamela Barbaglia in London; Editing by Shailesh Kuber and Toby
Chopra)
BT (BT.A)
