BT to announce break-up in two weeks

Published October 29th, 2000 - 02:00 GMT

British Telecom will announce plans for the break-up of the company within the next two weeks, The Sunday Times newspaper reported. 

 

The company has already put on record that it wants to separate its domestic wholesale business — which effectively rents out telephone wires to other operators — from the rest of the company. 

 

It also wants to float a minority stake in its mobile business, which includes BT Cellnet, from which it hopes to realize up to 9 billion pounds ($13 billion, 15 billion euros). 

 

According to early editions of The Sunday Times, BT has brought forward an announcement on the break-up to before November 9, when it is due to post its third quarter results. 

 

BT's City advisors have told the company it would be untenable to issue its reuslts without first addressing the strategic issues which have been turning investors off the company. 

 

BT chief executive Sir Peter Bonfield believes the burden of heavy regulation affecting the wholesale business is dragging down the company's share price.— (AFP)  

 

© Agence France Presse 2000  

 

© 2000 Mena Report (www.menareport.com)

You may also like