BT in talks on pounds 35bn merger
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BT and Cable & Wireless are in talks which could lead to a pounds 33bn merger - the largest in UK corporate history and considerably bigger that last year's pounds 9.3bn merger of the Glaxo and Wellcome drugs groups.
The merger discussions were confirmed last night by C&W, which is worth more than pounds 11bn, after weeks of stock market speculation over the on-off relationship between the rival companies.
The merger would require Government permission and would inevitably result in the disposal of Mercury Communications, C&W's UK subsidiary and the single biggest competitor for BT.
The admission from C&W followed feverish rumours in the City, which were accompanied by surges in the share price of both groups. The company said that the talks were "exploratory" and "may or may not lead to a merger".
BT confirmed last night that talks between the two companies' advisers had taken place.
Sir Iain Vallance, BT's chairman, is believed to be have held talks since the end of last year with Brian Smith, C&W's chairman, and Rod Olsen, acting chief executive. His approach followed Cable & Wireless' descent into chaos after a bitter boardroom struggle.
Full story, page 23
Comment, page 25
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments