26th May 2022 10:05
(Alliance News) - BT Group PLC on Thursday said the UK government is exercising its call-in powers to examine the increase of Altice UK Sarl's shareholding in the telecommunications company.
Back in December, Patrick Drahi's Altice lifted its stake in BT to 18% from 12% previously. At the time, Altice confirmed it had no plans to mount a takeover offer and would be bound by that statement under UK takeover rules.
BT said on Thursday that it has received notification from the UK secretary of state for Business, Energy & Industrial Strategy saying that the government is exercising its power under the National Security & Investment Act 2021 to investigate the increase in the French company's stake.
The act was introduced in January and it allows government ministers to more closely scrutinise approaches by overseas interests. It also means the UK government will be able to impose certain conditions on a takeover or block it.
BT, a former state-owned company, is particularly sensitive, as its Openreach arm maintains most of the UK's broadband network.
"BT group will fully cooperate with this review", the company said.
Shares in BT were down 4.5% to 181.25 pence each in London on Thursday morning.
By Sophie Rose; [email protected]
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