5th Oct 2026 07:54
(Alliance News) - BT Group has announced a deal to buy TalkTalk in what it labels a "genuinely unprecedented situation", while National Grid expects profit growth above its prior forecast. Ithaca Energy has announced a buy of its own, meanwhile.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called up 0.5% at 10,515.75
GBP: lower at USD1.3210 (USD1.3233 at previous London equities close)
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BROKER RATINGS
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Goldman Sachs starts Burberry with 'neutral' - price target 1,250 pence
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COMPANIES - FTSE 100
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BT Group has acquired TalkTalk from administration, with the telecommunications firm saying it "recognised the risk to the country" if the broadband provider went under. The deal to buy TalkTalk Telecommunications and PlatformX Communications protects the "continuity of service for its 2.5 million customers", BT adds. "After a prolonged, but ultimately unsuccessful, sale process for TalkTalk's consumer and wholesale operations, BT recognised the risk to the country, and especially vulnerable customers and key public services, should the company collapse. BT therefore approached the directors of TalkTalk and offered to step in immediately, in the public interest, to protect customers and critical national infrastructure," BT says. "By acquiring the business out of administration, BT will be providing much needed and immediate reassurance for TalkTalk's employees, its 1.5 million retail customers and its 1 million wholesale customers across the UK." BT estimates a roughly GBP400 million cash impact of the deal, which comprises consideration, transaction and administration costs. The sum also factors in an around GBP60 million trading loss for the balance of this financial year, as well as the non-receipt of some GBP100 million that would have been due to BT unit Openreach. BT's Openreach is a network infrastructure supplier of TalkTalk. Clive Selley will "lead the stabilisation and integration planning of the acquisition". Martijn Blanken will take over Selley's role as BT International chief. BT backed its financial 2027 outlook. The Financial Times reported on Monday that BT was closing in on a deal. Last week, the FT reported BT Chief Executive Allison Kirkby met with officials in the UK government's Department for Digital, Culture, Media & Sport to gauge whether a possible bid for TalkTalk would lead to a lengthy competition watchdog probe. Kirkby says on Monday: "This is a genuinely unprecedented situation, where millions of citizens and businesses were at risk if TalkTalk had collapsed. BT is the digital backbone of the country, with a presence in every postcode. We have been connecting the nation for generations, stepping up in the moments that matter, and BT acquiring TalkTalk is now the only viable option to keep millions of customers connected and supported."
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National Grid expects better annual profit than previously forecast, amid a strong showing at its non-regulated division. During the six months to September 30, its regulated businesses continued "to perform in line with our expectations", the utility said. The electricity transmission network operator has seen a "strong first half performance in National Grid Ventures & Other". As a result, it now expects full year earnings per share growth above its 13% to 15% guidance range. "National Grid Ventures & Other activities is expected to deliver [around] GBP130 million of additional performance in the first half relative to our expectations, reflecting significant one-off fair value gains following two successful capital market transactions within the NG Partners investment portfolio and stronger performance in our interconnectors business," National Grid said.
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Ithaca Energy has struck a deal worth up to USD1.11 billion to acquire offshore oil assets in Canada. The deal to buy the portfolio, which features assets off the East Coast of Newfoundland and Labrador, has been struck with seller Suncor Energy Inc. "This acquisition marks the next era of growth for Ithaca Energy as we make our inaugural international acquisition in Offshore East Coast Canada. The Transaction delivers on our clear stated growth strategy as we seek to diversify and grow our production and resource base and replicate our success in the UK Continental Shelf through disciplined international expansion in regions we believe we can create long-term value for our shareholders," Ithaca Executive Chair Yaniv Friedman says. "We are excited to welcome an experienced operating team with deep regional expertise and to build on the strong operating history of these assets." Ithaca will pay USD860 million upfront, plus a potential oil price-related contingent sum of up to USD250 million. Ithaca adds: "The assets comprise a 48% operated working interest in Terra Nova, a 40% non-operated interest in the White Rose Existing Lands, and a 38.6% non-operated interest in the White Rose Growth Lands, including the West White Rose Extension."
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COMPANIES - FTSE 250
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Galliford Try says it has been appointed to the latest Constructing West Midlands programme, a framework worth GBP3.0 billion. The work covers public sector buildings for local authorities and Galliford Try has been selected in the major works lot for projects worth more than GBP10 million, the building and infrastructure construction firm adds. CEO Bill Hocking says: "We are delighted to be working once again with our partners at Constructing West Midlands to deliver much-needed public infrastructure for communities across the region."
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OTHER COMPANIES
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Permanent TSB Group notes an announcement from a possible suitor, but adds that it is working with Bawag to satisfy the remaining conditions of a takeover of the Irish lender. Axis Capital, a Dublin-based advisory firm, said Friday it was considering making a cash offer for Permanent TSB, the Dublin-based bank, priced at EUR3.20 per share. It would value Permanent TSB as a whole at EUR1.74 billion. "PTSBGH confirms that no offer has been made by Axis for the company and that the announcement by Axis is highly speculative and conditional," Permanent TSB says. Permanent TSB in April agreed to a EUR2.97 per share bid from Vienna-based Bawag, which values the company at EUR1.62 billion.
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By Eric Cunha, Alliance News news editor
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