CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

How will BT shares react to Altice’s £2bn investment and 12.1% stake?

France’s second largest telecoms giant Altice, overseen by billionaire Patrick Drahi, has acquired a 12.1% stake in BT. The investment is seen as a vote of confidence in BT shares and the company’s ambitious full fibre roll-out.

  • BT share price up 2.11% during early trading on 10 June.
  • Contributions to BT Pension Scheme set to fall by £300m.
  • BT set to provide full fibre to 25 homes by end of 2026.
  • Ready to trade the BT share price? Open an account today

Will the BT share price react favourably to Altice’s involvement?

Early indications suggest that the market sentiment is positive towards Altice's investment in BT. The BT share price is up 2.98% in early trading on the morning of 10 June. Altice has invested in telecoms networks across the globe in recent years, with current holdings in France, the US, Portugal, Israel, and now the UK.

Altice president Patrick Drahi believes BT to be the best-placed of all UK telecoms companies to revolutionise the UK’s broadband network, describing its ‘significant opportunity’ to ‘extend its full-fibre [capabilities] to millions of households’.

BT CEO, Philip Jansen, has long insisted that the telecoms giant requires trusted, long-term investors to work alongside them to upgrade the British broadband network – an undertaking requiring hefty capital expenditure.

Altice is now the largest shareholder of the company, with its 12.1% stake inching them ahead of Deutsche Telekom’s 12% shareholding.

Are plans afoot for Altice to launch a takeover of BT long-term?

At the time of Altice’s investment in BT shares, the telecoms investor has shown no appetite to make a bid for a majority shareholding. Consequently, under the terms of the takeover code, Altice cannot submit a buyout offer for a minimum of six months without prior approval from BT’s senior management.

In a statement announcing Altice’s involvement, BT said that it ‘welcomes all investors who recognise the long-term value of [its] business’.

The statement added that the UK’s telecoms giant was ‘making good progress in delivering [its] strategy and plan’ for a full-fibre future nationwide.

Should investors in BT shares be confident about the future?

Although the BT share price has plunged over 55% in the last five years, there is a genuine sense that BT shares are on the rise again. They appear to have bottomed out during the Covid-19 pandemic, finding significant support above 100p per share. The current share price today is 188p, with BT shares surging 39.18% in the year to date.

BT recently restored its cash dividend, equating to a yield worth approximately 4.4% per annum, giving investors fresh confidence. In addition, the firm confirmed it would be slashing annual contributions to the BT Pension Scheme by £300m from July 2024 – a saving that would instantly improve BT’s bottom line.

It must also be noted that BT’s vast capital expenditure on the UK’s new full-fibre network will be offset, in no small part, by the UK government’s new 130% tax super-deduction.

Go long or short with the BT share price today

Take your position on UK shares for just a small initial deposit with CFDs.

Open an account to start trading or investing in UK shares.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.