UK to Block Indian Billionaire Mittal's BT Stake Increase

Author: Murat Tekinay…

UK to Block Indian Billionaire Mittal's BT Stake Increase

According to the Financial Times, the British government will oppose any attempt by Indian billionaire Sunil Bharti Mittal to increase his stake in telecoms group BT, citing the need to maintain sovereign control over 'critical national infrastructure'.

Background

Reuters exclusively reported last week that Bharti Enterprises was seeking to potentially increase its stake in BT to just under the threshold that would require a full takeover offer. A Bharti spokesman said the company is pleased with its current 24.95% shareholding and currently has no plans to increase its stake.

In September, Mittal and Gopal Vittal joined the BT board as non-independent non-executive directors. The report has not yet been officially confirmed.

Impacted Symbols

Symbols affected by this headline and their sentiment signals

BHARTIARTLNegative

BHARTI AIRTEL LTD

Bharti's strategic expansion plans in BT have been blocked, which may moderately negatively affect the company's international growth goals and reputation.

Impact score70%

BT.ANegative

BT Group plc

The government's decision to block stake increase may limit investor interest and negatively impact BT's share value by preserving its strategic independence.

Impact score85%

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