Risk of outside bids3 Nov 2021 08:34
Beyond the company’s half-year earnings, investors will also be keeping a close eye on whether European telecoms investor Altice makes a play for BT. Its founder and majority stakeholder Patrick Drahi acquired a 12% stake in the group for £2bn back in June. A binding agreement that blocks Altice from bidding for BT before 10 December is currently in place.
According to a Sky News report, BT has been shoring up its defences in recent weeks in anticipation of a potential bid. The company has appointed an advisory firm to work alongside Goldman Sachs, which itself was hired in August 2020 to defend against potential bidders.
The BT share price rose by around 6% briefly following the news report on 26 October. As of 2 November, the stock is up 5% year-to-date.
BT clearly has a long-term game plan, but the fate of BT Sport, heavy expenditure, and the potential of Altice’s bid mean investors will likely be paying close attention to the first-half earnings report.
https://www.cmcmarkets.com/en-gb/news-and-analysis/can-the-bt-share-price-hold-the-line