Billionaire businessman Patrick Drahi has increased his stake in BT to 18%
(Picture: PA Media)Can we take Patrick Drahi at his word? That is the big question being chewed over by investors.
Ever since the self-made billionaire first appeared on BT’s share register in June, many have been convinced that a deal was in the works.
Drahi insists BT is just the trade of the decade. Britain needs faster internet and BT is best placed to deliver it. What’s more, the company has the full support of the government thanks to its levelling up agenda.
A market shakeup by Ofcom in March was crucial to accelerating investment by BT and attracting Drahi: the regulator said it would let BT keep any profits from its investment in fibre broadband and won’t introduce price caps until at least 2031. Drahi knows the power of telecoms infrastructure and is simply piling in while shares are cheap. He is now BT’s biggest investor by far and may well increase his stake further.
Not everyone buys this argument: the share price dropped today when Drahi repeated his claim not to be plotting a takeover, disappointing at least a portion of traders hoping to get ahead of a deal.
The government certainly isn’t taking any chances, releasing a punchy statement warning off Drahi. Companies have a legal right to be notified if the government plans to intervene in a deal and today’s pre-emptive missive means Whitehall can now pounce the minute anything happens.
Anyone who was considering a tilt at BT — Drahi or otherwise — may think again after today’s statement from government
