National press has reported that speculation swept the market yesterday afternoon that Deutsche Telekom is poised to launch an audacious bid for BT Group, which will have to value the former monopoly at more than £31.1bn, its current value including debt. The private-equity giant, Blackstone Group, has recently taken a strategic 4.5 per cent stake in Deutsche Telekom and is seeking a seat on the board. Traders said Blackstone would buy the parts of BT Group that Deutsche Telekom does not want and would have to sell to ease regulatory concerns
Traders said the bidding for BT would have to start at a minimum of 250p, although they hinted that if the BT board accepts an offer it might need to be closer to 300p per share. Shares in BT Group edged 3.25p better to 226.75p as more than 47 million shares changed hands.