Feeds

BT dogged by Deutsche Telekom takeover talk

'Unlikely', say analysts

Intelligent flash storage arrays

Shares in BT were down a smidgen today after weekend press speculation that the UK incumbent could be the takeover target of German giant Deutsche Telekom.

Reports suggested that Deutsche Telekom was prepping a £25bn bid for BT with rumours fuelled still further by both firms' reluctance to comment.

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 sceptical, describing talk of any takeover 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 the firms might not actually be a very good fit.

Even if these obstacles can be overcome, there are still 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," Ovum said. "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 five per cent stake in Deutsche Telekom.

At lunch, shares in BT were up 4.5p (two per cent) at 233.5p. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.