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THEY will be ruling OUR country Unbelievable comments
Seems like what we should be talking about is lloyds bank the conversion has developed into a race issue, just because the new PM who has been elected by his party is of a brown skin.
The writing was already on the cards that the government were likely to intervene if a foreign takeover took place and that was factored into the share price considering that it was pretty much muted and has remained well below the previous high of £2.05 even though there was all the speculation of a takeover bid.
Todays share price fall is a knee jerk reaction to the news and it will recover as Bt's underlying recovery is steadily taking place over the next few years.
I think the reason why stocks like Bt, Lloyds etc are muted and fallen slightly and not following the strong rally on wall street is .because of further possible restrictions that could be implemented with the Government having a crunch Cabinet meeting today at No10 to review plan B to stem the spread of Omicron.
With all the euphoria of a potential takeover bid why is the share price not reflecting the same and finding it difficult to get over £1.70?
Is the market telling us a takeover is difficult of such a strategic company like BT?
Any BT bidder has big hurdles to overcome suggests UBS
The UK’s National Security and Investment Act gives the government a veto on M&A in sectors including communications
Openreach
Broadband network Openreach has a lot of admirers
Any potential bidder for British Telecom has some serious hurdles to overcome, according to UBS.
Reports yesterday suggested Reliance Industries, the company run by India’s richest man Mukesh Ambani, was looking at a possible offer, though these reports were subsequently denied.
France’s Altice, the vehicle of tech billionaire Patrick Drahi and that has a 12% stake, is also free to make an offer or increase its stake in the UK telco from 10 December.
UBS, though, points out that the UK’s National Security and Investment Act gives the government a veto on M&A in sectors including communications and it has been active in a number of recent deals in various industries.
Second, in the event of a change of control, the BT Pension Scheme Trustees could look at the pension solvency basis rather than an actuarial basis and that could see the deficit rise to more than £23bn as of June 2020 compared to an actuarial deficit of £7.9bn.
Excluding the pension, BT has an enterprise value of around £35bn and UBS notes the recent moves for both Morrisons and DMGT saw higher than expected pension deficits.
Sell is UBS’s investment view with a target price against the market’s 161p, down 1.5% today.
I think that Considering the government has given BT tax breaks to help support its national super fast fibre roll out, it seems very unlikely that BT will be allowed to be taken over not just for potential security implementations, but also because they wouldn't want all the revenue benefits resulting from the government supported completed national fibre
infrastructure going abroad. The likely scenario may be to fully break up Openreach from Bt group so that they operate as 2
completely separate companies in their own rights. bt group can then be taken over by whoever wants it.
Considering that we had a positive set of of half year results, followed by many brokers upgrading BT as a buy and Drahi’s hoovering in the background could this dip be a great buying opportunity to pick up these shares on the cheap?
Thank you this update Fleccy.
So bottom line is that BT is building a wall to to stop Drahi launching a bid or making it very difficult for him. But would this stop Drahi from accumulating more shares and hence having a bigger say to then force BT to undo these changes made to the control-of-clausea of its subordinated bonds?
No doubt Drahi is making his own plans to counter such moves by the BT board . It's getting more intriguing. So over to Drahi for his next move come December
With so much speculation about a potential bid on the horizon why is the share price not reflecting this and dropping today? Is the wider market not believing that a takeover will be happening soon? I was hoping that the share price would be nudging towards the £2 mark slowly but its struggling to break the £1.80 price let alone maintain £1.70
BT launches new ‘flexible’ TV packages -
https://www.broadbandtvnews.com/2020/02/18/bt-launches-new-flexible-tv-packages/
Good quality stocks are loved by the market because they're more likely to be solid, dependable businesses. Profitability is important, but so is the firm's financial strength. A track record of improving finances is essential.
One of the quality metrics for Bt is that it passes 7 of the 9 financial tests in the Piotroski F-Score. The F-Score is a world-class accounting-based checklist for finding stocks with an improving financial health trend. A good F-Score suggests that the company has strong signs of quality.
Buying at a fair price
While quality is important, no-one wants to overpay for a stock, so an appealing valuation is vital too. With a weaker economy, earnings forecasts are unclear right across the market. But there are some valuation measures that can help, and one of them is the Earnings Yield.
Earnings Yield compares a company's profit with its market valuation (worked out by dividing its operating profit by its enterprise value). It gives you a total value of the stock (including its cash and debt), which makes it easier to compare different stocks. As a percentage, the higher the Earnings Yield, the better value the share.
A rule of thumb for a reasonable Earnings Yield might be 5%, and the Earnings Yield for Bt is currently 6.75%.
In summary, good quality and relatively cheap valuations are pointers to those stocks that are some of the most appealing to contrarian value investors. It's among these shares that genuine mis-pricing can be found. Once the market recognises that these quality firms are on sale, those prices often rebound.
Check this article apologies if already posted
https://www.dailymail.co.uk/money/markets/article-9679467/Big-banks-5bn-loan-windfall-boost-dividends.html
I brought shares a couple of days ago after reading an article in the evening standard earlier this week. What intrigued me was the investments by the big boys..Mike Ashley and Philip green. Why was were those big shots putting a lot of money into this company. So after doing research found this company's fundamentals and business plan are very good.. Schoolers plc have also invested and brought shares. All bodes well for the support in the share price...onwards and upwards. .fingers crossed
Hi, I have read that as part of the merger, Dixon shareholders would receive 0.155 of a combined company’s share in exchange for each share of Dixons they held. This may sound like a silly question, but does this mean for every 100 dixon shares one will receive in exchange 15.5 shares in the new merged company? What are the views on the panel here ie is this a good deal for Dixon shareholders? If someone had 10000 Dixon shares they will end with a lot less in the merged company, but hopefully the higher value of the new shares will compensate.