UK Likely To Resist Sunil Mittal’s Bid To Raise BT Stake, Sovereign Control Concerns Come Into Focus
· Free Press Journal
Mumbai: The UK government is expected to oppose any move by Bharti Enterprises Chairman Sunil Bharti Mittal to increase his stake in British telecom company BT, according to a report by the Financial Times.
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The report said British authorities are worried about maintaining sovereign control over critical national infrastructure. Telecom networks are considered highly sensitive because they support communication, defence and digital services across the country.
At present, Bharti Enterprises owns a 24.95 percent stake in BT.
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The development comes after reports suggested that Bharti Enterprises was exploring the possibility of raising its holding in BT to just below the level that would require a mandatory takeover offer.
However, Bharti had earlier clarified that it is comfortable with its current shareholding and has no immediate plans to increase the stake further.
A spokesperson for Mittal declined to comment on the latest report, while BT also chose not to comment.
Bharti Strengthened Presence In BT
Bharti Enterprises strengthened its role in BT last year when Sunil Bharti Mittal and Bharti Airtel Vice-Chairman and Managing Director Gopal Vittal joined the BT board as non-independent non-executive directors.
Their appointment was seen as a major step in Bharti’s long-term relationship with the UK telecom giant.
Mittal has repeatedly spoken about building strong global telecom partnerships and expanding Bharti’s international presence.
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Earlier this month, Mittal said he plans to gradually hand over leadership responsibilities to the next generation over the coming decade.
During the company’s earnings call, he also expressed his desire for Bharti Telecom to eventually regain majority ownership control in the future.
Mittal said he would like Bharti Telecom to hold over 50% stake over time, though he admitted such a move would take years to achieve.
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Meanwhile, shares of Bharti Airtel ended almost unchanged on Wednesday.
The stock settled flat at Rs 1,851.25 per share on the BSE amid the developments surrounding BT and Bharti Enterprises’ long-term plans.