Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (11835)	8/6/2001 2:24:34 AM
From: elmatador	Respond to of 12823

WestLB in $25.7bn offer for BT fixed-line network By Andrew Ward Published: August 5 2001 19:10GMT \| Last Updated: August 6 2001 03:23GMT British Telecommunications' strategy is set to come under fresh scrutiny this week after a consortium led by WestLB, the German investment bank, offered to buy its national fixed-line telephone network for about £18bn ($25.7bn). News of the approach follows last week's £8bn bid by a consortium of US finance groups for BT's local telephone wires and could increase pressure on the group to consider a sell-off of infrastructure. The WestLB proposal is thought to have come in a meeting with Philip Hampton, BT's finance director, several weeks ago. People close to the talks described the approach as "tentative and embryonic". BT has not ruled out the WestLB proposal but is understood to be in no hurry to dispose of its fixed-line business, which it considers to be an important part of its strategy. However, an £18bn windfall from any deal would wipe out BT's remaining debts, which have weighed heavily on the group in recent months. Shareholders might be tempted to press management to consider the offer. Last week, two top shareholders called for a rethink of BT's decision to reject the bid for the local network, arguing it would reduce debt and free BT to focus on its core consumer services. The two offers have come at a time of upheaval at BT, which is preparing to demerge its wireless division this autumn and is undergoing a restructuring programme aimed at rescuing the group from heavy debt and falling profits. There have been signs of recovery in recent weeks, with the shares outperforming the telecoms sector. The group's debt, which peaked above £30bn, had been reduced to £17.5bn at the end of June by a £5.9bn rights issue and disposals of international assets as it concentrates on its UK business. The WestLB consortium offered to relieve BT of its entire national fixed-line telephone infrastructure. BT would keep its customers but have to pay for use of the network. WestLB is believed not to have finalised the make-up of the consortium, which is likely to involve other financial institutions. COMMENTS: This has the potential to ignite the telecoms market once again. We could imagine this model being ported to countries in Central Europe and othe replaces that didn't privatize during the late 90's. With the DSL bluff already called off: Message 14489194 it is time to move on. We will be discussing this for a long time Frank.