Proactive Investors -
- FTSE 100 rallies, up 33 points at 7,290
- BT chief executive Philip Jansen to step down
- Utilities bounce after Thames Water funding boost
BT Group mounts takeover defence
As well as dealing with the departure of chief executive Philip Jansen, BT Group plc (LON:BT) is in the midst of mounting a takeover defence against German telecoms giant Deutsche Telekom (ETR:DTEGn).
Tim Höttges, chief executive of Deutsche Telekom, which is a 12% shareholder in BT, has fueled speculation of a bid this year
BT has ramped up its collaboration with advisors from Robey Warshaw and Goldman Sachs (NYSE:GS) as it strengthens its defence strategy, according to a Telegraph report.
Additionally, observers have pondered the possibility of a bid from telecoms billionaire Patrick Drahi, who holds a 24.5% stake in BT. Drahi, however, has ruled out a bit for the time being.
Severn Trent boosted by Thames Water fundraise
Waterworks blue chip Severn Trent (LON:SVT) is among the most bullish of the FTSE 100 constituents today, adding 2% to 2,441p.
The group has been boosted by news that fellow utilities group Thames Water will get a £750mln lifeline from shareholders to stop it from being taken into public ownership.
Investors are also likely to pump an extra £2.5bn in Thames Water over the 2025 to 2030 regulatory period, the company said, to further improve operational performance and financial resilience.
United Utilities Group is also looking strong, adding 1.06% to 941.6p
BT shares recover from Jansen dip
BT Group plc shares staged a recovery this afternoon after falling 0.2% in today’s trading session.
News of BT Group plc’s chief Philip Jansen’s departure in the next 12 months sent the British telecoms leader’s shares lower, but a mid-afternoon recovery sent them 0.12% higher than Friday’s closing price.
Though Jansen’s tenure has hardly been lauded (one analyst today said he failed to breathe life into “slow, creaking juggernaut”), his exit still heralds what could be an uncertain moment for the company, particularly with widespread job cuts on the horizon and an ongoing full-fibre broadband buildout.
BT shares were changing hands at 122.5% as of 3pm.
The broader FTSE 100 index has has a strong session today, adding 0.6% to 7,301.
GSK seen higher on vaccine approval
GSK shares were seen over 0.8% higher to 1,325p this afternoon after the British pharmaceuticals giant’s vaccine for the respiratory syncytial virus (RSV) was approved by the Medicines and Healthcare products Regulatory Agency (MHRA).
RSV commonly results in symptoms similar to a common cold, yet it poses a significant risk of pneumonia in both toddlers and the elderly.
GSK (LON:GSK) shares lost some ground as the afternoon progressed, but remain 0.25% higher at the time of writing.
The wider footsie blue-chip index remains 0.4% in the green at 7,287.