Feeds

BT dogged by Deutsche Telekom takeover talk

'Unlikely', say analysts

Next gen security for virtualised datacentres

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. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
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 ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
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?