exploits , vulnerabilities , articles , BT dogged by Deutsche Telekom take-over talk
| 2006-05-30 |
BT dogged by Deutsche Telekom take-over talk |
Now, though, The Telegraph quotes a source from Deutsche Telekom who describes the idea of a bid as "crackers" and that "members of the board would be horrified".
Analysts at Ovum are equally as sceptical describing talk of any take-over of BT by Deutsche Telekom as "unlikely".
Why? Well, analysts point out that the ?25bn price tag is a bit steep - even for Deutsche Telekom - and they are concerned that the firms might not actually be a very good fit.
Even if these obstacles can be overcome, then there are the regulatory hurdles that would need to be faced over such a marriage.
"In fact, we see few synergies arising from bolting together a German and a British fixed line operation," said Ovum. "Any potential opportunities for fixed-mobile convergent offerings by combining BT's UK fixed line network with T-Mobile UK are unconvincing."
Talk of a tie-up between the two firms bubbled to the surface recently after US investment group Blackstone took a 5 per cent stake in Deutsche Telekom.
At lunch shares in BT were up 4.5p (2 per cent) at 233.5p.
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