Share Prices & Company Research

Market News

17 Jul 2020 | 09:45

BT chairman plays down Openreach stake sale - report

(Sharecast News) - BT's chairman has played down speculation that the company is planning to sell a stake in its Openreach broadband infrastructure business, according to a report. Jan du Plessis told BT's annual general meeting on Thursday that Openreach "remains an important part of the BT group", The Times reported.

The Financial Times said in May that BT was in talks with potential bidders for a stake in Openreach. The paper said potential buyers included Macquarie and a sovereign wealth fund and that the company had held talks with interested parties.

Openreach is a legally separated company within BT but it is fully owned by the former state monopoly. BT has considered spinning off Openreach, its most profitable division, before and has turned down approaches from financial investors.

Selling a stake in Openreach would bring in money for BT to fund a £12bn plan to connect 20m homes to full fibre broadband by the end of the decade. BT cancelled its annual dividend in May for the first time since it was privatised in 1984 and analysts have questioned whether BT can afford the project.

Du Plessis told shareholders the FTSE 100 company was investing heavily in network infrastructure and had accelerated its expansion plan subject to political and regulatory support. BT shares fell 0.9% to 114.10p at 10:09 BST.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.