London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Billionaire closer to BT takeover after moves to increase stake

Billionaire closer to BT takeover after moves to increase stake

Analysis: increased control of British telecoms group means Patrick Drahi is one step away from possible deal
Patrick Drahi’s move to increase his control of BT puts him potentially just one step away from triggering a full takeover of the British telecoms business, although the billionaire will now have to wait six more months before he can seal the deal.

Drahi, who informed BT’s chair, Adam Crozier, that he had upped his stake to 18% after the stock market closed on Monday, can continue to increase his control, snapping up more stock, but under UK rules cannot mount a full takeover bid until 15 June.

While the founder of Altice, a telecoms and mass media company, has so far positioned himself as a benevolent investor, his decision to buy more stock on the first trading day after the expiration of a no-bid clause triggered when he made the surprise move to become BT’s biggest shareholder in June, sends a clear reminder of his activist intentions.

One City source said the stake-building approach marked a strategy of “creeping control” without having to pay the premium that would come with a bid offer. Drahi is understood not to have outright economic control of all of the 18% he now holds, but he does have the voting rights.

Drahi’s Altice UK is understood not to have acquired any of the 12.06% stake held by Deutsche Telekom (DT). Tim Höttges, the chief executive of BT’s second-largest shareholder, has said he is “entertaining all options” and referred to DT as a “kingmaker” in regards to the future of the UK company.

A deal between Drahi and DT, which has held its stake in a passive capacity as a legacy of BT’s takeover of the mobile operator EE in 2015, would already pass the 30% threshold at which a takeover offer must be tabled.

Until mid-June 2022 Drahi, who has not as yet requested a seat on the BT board, can only make a move for majority control with the agreement of BT’s board or if a third party emerges with an offer.

BT confirmed that Crozier, the former chief executive of ITV and Royal Mail who officially took over as the chairman at BT on 1 December, and its chief executive, Philip Jansen, met with the culture secretary, Nadine Dorries, on Monday. The meeting, which was understood to be about BT’s role in the national rollout of 5G and broadband, was prior to Drahi snapping up the extra 6% stake.

On Tuesday, the government said it would “not hesitate to act” to protect BT, which is considered critical to the UK’s national communications infrastructure, from foreign takeover if it was deemed necessary.

BT has strengthened its defences by hiring advisers at Robey Warshaw as Drahi looks to cash in on the apparently undervalued telecoms company, which is trading at 65% below 2015 levels.

Drahi’s move followed BT’s £15bn commitment to the rollout of full-fibre broadband to 25m homes by 2026, having gained valuable regulatory and financial incentives guaranteeing significant returns on its huge investment over the long term.

BT’s share price fell more than 5% on the news, making it one of the biggest fallers in the FTSE 100, as investors’ hopes of a takeover for Christmas failed to materialise.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×