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Back in May the Guardian factually reported that :-
The French billionaire Patrick Drahi has increased his stake in BT to more than 24%, but reiterated that he does not intend to make a bid to take over the £15bn British telecoms group.
Drahi, who had control of an 18% stake through his subsidiary Altice UK, raised that position to 24.5% on Tuesday. Drahi’s purchase of 650m shares cost about £960m, at BT’s share price of 147.85p at the close of trading on Monday.
Then in July the Telegraph reported :-
BT is reportedly on "high alert" over a potential takeover spearheaded by major shareholder Deutsche Telekom.
The Telegraph reports that the telco giant has “intensified work” with Goldman Sachs and Robey Warshaw in recent months as it looks to defend a takeover bid.
Perhaps BT need to seek a refund for misinformation 😂
If Mr Drahi has his shares on DRIP eventually he will trigger the 30% threshold .
Will defo trip the 25% level this September if he has.
Bless him.
Answer :-
The intrinsic value of one BT. A stock under the Base Case scenario is 290.33 GBX. Compared to the current market price of 113 GBX, BT Group PLC is Undervalued by 61%.
So if reinvesting your Dividend buy low then LATER sell high
Hope this explains it in a better Ladybird Book of Investing for my distractor.
As I posted previously we all want to buy low and sell high.
Therefore if you are going to be buying in the next few weeks with a fixed amount of cash you would not to be lucking through your lawn for a four leaf clover to wish the price up.
I am here long term and the only time I am wanting the price higher is my selling day - I know what price that is - and will be very satisfied when that (achievable) amount is reached.
My views my opinions my choice. I will not criticise you or your choice so be a ‘grown up’ and respect my stance.
Buy Low
Sell High
Bielsaball2021 - yes unless you are looking to sell it makes sense to wish the price steady or lower until Dividend Reinvestment.
Personally I am ready if or when a bid is made but my final purchases in BT will be made when the Feb Dividend is made in 2024. By then my entire holding in BT will be in my ISA awaiting any bid that may come along. I will be able to sell of my non-ISA BT holding and investment in other shares in my portfolio made from September 2024 BT dividends.
S
Clues
This was the May forecast :-
https://www.reuters.com/business/media-telecom/deutsche-telekom-slightly-raises-2023-profit-outlook-2023-05-11/
For those who missed it DT our potential buyers …….. raised their profits expectations this morning for a second time now at €41 billion ……… more than enough to put in a decent bid for the 88% they do not own.
Amen
Fleccy re:-
No doubt the £131,272,166, before tax dividends, he'll receive in September will help
Wonder how many he has in his ISA 😂😂
Mayo,
It amazes me - why no one such as DT do not jump in and make the bid or buy in to build up their stake at these rediculous prices.
How Low can they Go?
GLA.
…….a takeover of BT be made - would it have to be announced to the Stock Exchange immediately- or before or after the days trading??
Does anyone know?
I would suspect it would be a 7am announcement.
Your thoughts?
Allison will be required to build a shareholding of 500% of salary within five years.
is that not a reason for her to keep the share price Low 😂😂😂???
Perhaps any Bid would come after XD next week when the price will be a few percent lower - thus bid price will be a few pence lower - or more attractive ………..
Q1 results out - anybody got any hopes or expectations.
There were a LOT of staff left at the end of March - the 3.9% + price rise effect should be visible in the churn too.
Maybe Mr Drahi will be looking in too.
Anyway XD next week ………….
GLA
Thank you all for your interesting replies on my questions.
Holding them in an ISA certainly appears to be the big winner in here.
BUT ….. no one has come up with a selling price to jump ship should the hypothetical take over bid materialise.
Would you jump - if a conditional short term offer was on the table ……. And if so what price ???
Nobody has made a bid yet - quite the contrary Mr Drahi has committed to not making one for the next five months or so.
That nice chap from DT has mentioned his displeasure in owning dwindling price BT stock for his company under his watch.
So should the ‘anticipated by the Daily Telegraph’ bid actually happen - what will you do?
What can we do - we can sell ? or we can wait for A bidding war? Or we can do nothing and wait for the cash to arrive - as happened when O2 was bought.
What price will get you pressing the button ? £2 - £2.50 - £3 or more - or perhaps even less ………..
meanwhile I sit awaiting XD day and div reinvestment day ………. Very patiently.
As the share price rises - I get richer - as it falls my div reinvestment shares tally rises.
For one a win-win for me.
Nobody has made a bid yet - quite the contrary Mr Drahi has committed to not making one for the next five months or so.
That nice chap from DT has mentioned his displeasure in owning dwindling price BT stock for his company under his watch.
So should the ‘anticipated by the Daily Telegraph’ bid actually happen - what will you do?
What can we do - we can sell ? or we can wait for A bidding war? Or we can do nothing. And wait for the cash - as happened when O2 was bought.
What price will get you pressing the button ? £2 - £2.50 - £3 or more - or even less ………..
meanwhile I sit awaiting XD day and div reinvestment day ………. Very patiently.
Am out of U.K. so will pick up the Sqwark box podcast - thanks for the heads up Fleccy.
Meanwhile am looking forward to dividend reinvestment at this level if it stays low until September…..
The share price only matters when you press the sell button.
At the moment those who buys shares into their ISA’s with dividend payments will be hoping for the price to stay subdued until Mid September………….. or Early February…….
Can anyone outline the advantages to BT and to us shareholders - of this deal and rebranding of BT Sports in mid July?
What do we save and did we make a profit to balance sheet on the partial sale?