Feeds

OFT rules on BT's Yellow Pages business

Raises doubts about sale

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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

Providing a secure and efficient Helpdesk

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.