BT dials up savings to fend off billionaire

bT brought back its dividend and accelerated cost-saving plans as it tries to defend itself from a possible takeover by its largest shareholder.

The telecoms group declared an interim dividend of 2.31p per share in its results for the six months to the end of September.

its return will be hailed by bT’s cash-starved shareholders, who have waited 18 months for a payout after the company scrapped dividends to fund its fibre broadband expansion.

bT also targeted £2bn in cost savings by 2024, a year earlier than planned, following news earlier this week that it had achieved £1bn in savings 18 months ahead of schedule.

The return of the dividend, as well as the speeding up of costsavings and the ditching of a partner for Openreach, comes as bT aims to bolster its defences against a potential swoop from its biggest shareholder, French billionaire Patrick Drahi, who owns a 12.1pc stake through his company altice. Last week, the firm brought in advisory firm robey Warshaw to help navigate any potential bids. Drahi promised not to make an offer for bT when altice purchased its stake in June, but this commitment expires on December 10, meaning he could make an approach before the end of the year.

Weakness in bT’s share price, which has fallen by 25pc since altice bought its stake and is 70pc lower than six years ago, has increased talk of a bid.

any such move would come at a sensitive time for bT, which is due to see adam Crozier, the exboss of royal Mail, start as chairman on December 1.

The developments accompanied results for the period which saw the company’s profits drop 5pc to £1bn, mainly due to higher costs, while revenues fell 3pc to £10.3bn. Chief executive Philip Jansen said the company is ‘on track’. Shares climbed 11pc, or 15.65p, to 157.8p.