BT to Unveil Structure Overhaul

08 November 2000

British Telecommunications is expected to unveil tomorrow a structural overhaul aimed at alleviating its massive debt burden.

At the heart of the anticipated overhaul will be the sale to public investors of up to 25% of BT’s mobile phone assets, BT Wireless, valued at around £40 billion.

The company is also expected to separate its retail sales and fixed-line arms, allowing higher revenue to be generated from the less regulated retail division. In addition, BT may reveal plans to spin off its internet arm.

The announcement could come tomorrow, as BT posts fiscal Q2 results expected to show a 49% decline in pre-tax profit. BT has previously disclosed that the results of a “strategic review” would be unveiled before year-end, but has declined to comment on speculation that this will be tomorrow.

News source: Wall Street Journal