Feeds

OFT rules on BT's Yellow Pages business

Raises doubts about sale

  • alert
  • submit to reddit

The essential guide to IT transformation

The Office of Fair Trading (OFT) ruled today that BT's Yellow Pages business should be subject to a cap on advertising fees for four years from January 2002.

The decision from the OFT was supposed to help clear the way for the sale of BT's Yell business raising an expected £3 million towards BT's £30 billion debt mountain.

Instead, the decision appears to have thrown some doubt onto the future of the deal.

Reuters today quotes an unnamed source close to the deal who claims that as much as £1 billion could be wiped off the value of the business as a result of the OFT's decision today. The same source even casts doubt over whether the deal could go ahead in light of the decision.

However, it's reported that bankers involved in the negotiations believe the £1 billion price cut is too ambitious although they do concede that the OFT's decision is likely to lower the final sale price.

Just in case you haven't heard, yesterday BT announced a £6 billion rights issue and said that the company would split in two as part of its bid to clear its debt. ®

Related Stories

BT shake-up to save business (touch wood)
BT unveils first-ever loss
What's in BT's bargain bin?
'I'm not a quitter and I love my critics' - BT's Bonfield

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
True fact: 1 in 4 Brits are now TERRORISTS
YouGov poll reveals terrible truth about the enemy within
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?