BT Group defends itself against a takeover
The telecom provider is at risk of being taken over as its value has slumped to just above £10 billion
Stocks impacted: BT Group (BT)
BT shares rallied in early trading on Monday after it was revealed that the firm is preparing to defend itself against a hostile bid. In particular, the company’s board had requested Goldman Sachs to update its takeover defense strategy against any potential bid. The telecom provider is at risk of being taken over as its value has slumped to just above £10 billion, which is the lowest since the financial crisis. Deutsche Telecom AG, which holds a 12% stake, has previously been mentioned as a potential buyer but BT has not received any formal approaches. Late last month, the firm reported that its revenue shrank 7% to £5.24bn due to the economic fallout of coronavirus. Earlier this year, BT withdrew its full-year profit guidance and suspended its dividend as the pandemic bit into its profits. Amid the latest news about defending from a takeover, the company’s stocks rallied nearly 6% on Monday.
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