French billionaire Patrick Drahi’s steadily growing stake in BT has been a point of fascination for watchers of the UK’s telecommunications industry. The initial holding, revealed in June 2021, has been slowly rising. It has also been the subject of a national security review by the UK government, which ultimately cleared it in August last year. Now, the telecoms tycoon owns almost 25%, although he still says he doesn’t plan to make a takeover offer.
(Bloomberg) — French billionaire Patrick Drahi’s steadily growing stake in BT has been a point of fascination for watchers of the UK’s telecommunications industry. The initial holding, revealed in June 2021, has been slowly rising. It has also been the subject of a national security review by the UK government, which ultimately cleared it in August last year. Now, the telecoms tycoon owns almost 25%, although he still says he doesn’t plan to make a takeover offer.
Here’s the key business news from London this morning:
In The City
BT Group Plc: Patrick Drahi’s holding company bought a further 650 million shares in the British telecommunications company, tightening his grip over the London-based telecom giant.
- The increased stake gives him at least twice as big a shareholding as the company’s next biggest investor, Deutsche Telekom AG
- Last week, BT announced plans to cut up to 42% of its total workforce by the end of the decade
Pennon Group Plc: Ofwat, the UK’s water regulator, has opened an investigation into Pennon-owned South West Water’s performance on leakage and per capita consumption.
- Last week, water companies apologized for sewage leakages, warning that bills will rise due to the cost of fixing the problem
Cranswick Plc: The supplier of meat to Sainsbury and Asda stores’s operating margin fell over the last year as higher prices squeeze profitability.
- Margins improved slightly in the second half of the year as revenues grew
In Westminster
The UK government borrowed more than forecast in the first month of the fiscal year as debt interest payments and cost-of-living support measures for consumers drove spending higher.
If you live in Oxford, Exeter, or Bristol, then you’re based in one of the best places to live and work in the UK, according to a survey of economic wellbeing by PWC. London and northern cities like Bradford, Birmingham and Manchester ranked among the worst.
In Case You Missed It
HSBC Holdings Plc and the Bank of Nova Scotia defeated a lawsuit alleging they conspired to manipulate the price of silver, when a federal judge in New York threw out a 2014 lawsuit by metals futures traders on Monday. The UK lender will have another day in court though, after First Citizens Bank & Trust Co. sued HSBC for allegedly raiding dozens of employees from Silicon Valley Bank as First Citizens was taking over the failed California lender. HSBC declined to comment on that lawsuit.
Junior doctors in England will stage another 72-hour walkout over pay and warned of a summer of industrial action after talks with the government broke down on Monday. The strike will take place between June 14-17.
Looking Ahead
Clothing and food chain Marks & Spencer Group Plc and energy provider SSE Plc are due to report results tomorrow before the open.
Marks & Spencer may post a decline in full-year pretax profit after sacrificing margins to keep grocery prices competitive, according to Bloomberg Intelligence. With fiscal 2022-2023 EPS guided to exceed 160p — up 68% from last year — SSE will increasingly rely on its offshore wind unit to sustain momentum as commodity prices cool.
Britain’s inflation rate is set to fall at the sharpest pace in more than 30 years when April figures are reported tomorrow, giving households a glimmer of relief from the cost-of-living squeeze. The Consumer Prices Index is expected to tumble to 8.2% last month from 10.1% in March, according to a Bloomberg survey of economists. The figures are hotly anticipated by the Bank of England and investors and will put to a test bets on policy makers lifting interest rates to as high as 5%.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
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