Feeds

BT dogged by Deutsche Telekom takeover talk

'Unlikely', say analysts

Secure remote control for conventional and virtual desktops

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. ®

Intelligent flash storage arrays

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
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.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
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?
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.