BT shares falls on record rights issue

Shares in British Telecom fell on the London market this morning after the group announced a huge euro 9

Shares in British Telecom fell on the London market this morning after the group announced a huge euro 9.8-billion share issue, a break-up of the group and a full-year loss.

Shares in the debt-ridden company were 3.4 per cent lower at 549p in early trade here, on a flat overall market.

BT said it would offer the new shares at 300p per share - a discount of almost 50 per cent on yesterday's close.

It also unveiled plans to split the group into two new quoted companies: Future BT - focusing on the European network and retail business - and BTWireless encompassing its mobile telephony interests.

READ MORE

British Telecom reported a fourth-quarter loss of £2.82 billion sterling in the three months to March 31st, compared to a profit of £629 million a year earlier.

For the full fiscal year to March 31st, it made a pre-tax loss of £1.03 billion, compared to a profit of £2.94 billion a year before.

AFP