Is French tycoon taking ‘creeping control’ over BT?

As Patrick Drahi raises stake in telecoms giant to 18pc . . .

‘A flight of money and skills overseas’

FRENCH billionaire Patrick Drahi has been accused of trying to gain ‘creeping control’ of BT after expanding his stake.

The tycoon now owns 18pc of the FTSe 100 giant through his company Altice after purchasing another 585m shares, worth just over £1bn. he previously had a 12.1pc stake.

Drahi, 58, reiterated that he had no intention of making an offer for BT and was ‘fully supportive’ of its strategy.

he added: ‘We are pleased to take this opportunity to increase our shareholding in BT. Over recent months we have engaged constructively with the board and management of BT and look forward to continuing that dialogue.’

The shares dropped 4.3pc, or 7.5p, to 167.35p. BT said it will ‘continue to operate the business in the interest of all shareholders’.

A source close to BT said the purchase was no surprise and clarified that Drahi (pictured) is ‘looking to gain creeping control over the business’. They said BT was only informed of the purchase on Monday, a day before the public announcement.

The statement that he does not intend to make an offer means Drahi will be barred under city rules from making a bid for BT for six months unless a rival makes a move. he can increase his holding during the period.

The billionaire, who also owns auction house Sotheby’s, made a similar commitment in June in his shock unveiling of a 12.1pc stake, making him the largest shareholder. This first lockout period expired on Saturday, fuelling rumours that he could swoop, possibly by buying the 12pc stake held by second-largest investor Deutsche Telekom. With his current 18pc stake, this would take him over the 30pc threshold at which a takeover offer must be made. Drahi’s move drew a swift response from the Government, which said it was monitoring the situation ‘carefully’. ‘The Government is committed to levelling up the country through digital infrastructure, and will not hesitate to act if required to protect our critical national telecoms infrastructure,’ a spokesman said.

The statement comes after a meeting on Monday between Digital secretary nadine Dorries and BT boss Philip Jansen and chairman Adam crozier, which is thought to have involved discussions on Drahi’s influence.

Drahi could face a public relations struggle from retail shareholders, who while only owning 10pc of the shares number around 782,500 people. Any bid for BT is likely to be subject to the national Security and Investment Act, due to come into force in January, which allows the Government to intervene in any takeovers that raise national security concerns.

Prospect, one of the leading unions at BT, has previously called on Business Secretary Kwasi Kwarteng to take personal charge of any takeover and that any bid should not involve ‘a flight of money and skills overseas’. Political and regulatory hurdles may mean Drahi decides not to go further.

Berenberg analyst carl Murdock-Smith said: ‘A takeover offer will be very heavily scrutinised.’