Feeds

Market sceptical on BT bid for Colt

Premature

  • alert
  • submit to reddit

Remote control for virtualized desktops

ComputerWire: IT Industry Intelligence

Excitement entered the moribund sector of Europe's new carriers yesterday with rumors that BT Group Plc is plotting a bid for Colt Telecom Group Plc, a move that supposedly had the backing of Colt's major shareholder New York investment bank Fidelity. Newspaper reports suggested that BT would bid around 1bn ($1.46bn) for Colt, a modest premium on the current market valuation of 768.7m pounds ($1.1bn).

Though an all-share offer may well tempt Colt shareholders and avoid adding to BT's debt burden, BT chief executive Ben Verwaayen recently dismissed talk that the company would bid for troubled Energis Plc, saying it was unlikely to be aligned with merger and acquisition rumors. The market was unconvinced by the speculation and the shares rose 6.25% to 51 pence.

The logic of a bid for Colt would be to beef up BT's loss-making Ignite enterprise arm and while takeover talk may currently be premature, eventually the survivors of the shake-out in the sector will be forced to get together.

© ComputerWire. All rights reserved.

Choosing a cloud hosting partner with confidence

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
prev story

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
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.
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?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.