BT Group shares surge as Bharti Global acquires 24.5% stake, with backing from past regulatory approvals.

From Investing.com: 2024-08-12 05:10:26

Shares of BT Group Plc (LON:) surged as Bharti Global agreed to buy a 24.5% stake. Trading 6.1% higher at £138.45, the acquisition will occur in two stages: immediate purchase of 10% from Altice UK, followed by the remaining 14.5% pending regulatory approval under the National Security and Investment Act.

Despite potential regulatory scrutiny, the government’s past approval of Altice’s increased stake in BT minimizes obstacles. Citi Research upholds a £2.00 target price for BT Group using a DCF model with 8.0% WACC and 0% perpetuity growth rate from FY27. Despite optimism, risks including pension fund size and competitive challenges persist.



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