BT shares up on buyout talk

Private equity group makes noises about buying telecoms giant

Reports suggesting BT could be acquired by a private equity group sent shares soaring today.

Several newspaper reports over the weekend suggested that a consortium was pondering a bid for the telecoms giant. Telecoms firms are seen as ideal candidates to extend the trend that has seen several public companies taken off the financial markets. Analysts say predictable, repeatable revenue streams are attracting the private interest.

BT said the reports were “speculation” but a new Merrill Lynch research note also suggests BT - and fellow telecoms firms NTL and KPN - would represent attractive acquisitions for private buyers.