BT in talks over sale of stake in Openreach

BT is in talks to sell a multi-billion pound stake in Openreach, it was claimed last night.

The telecoms group is reportedly looking at the move as a way of bank rolling a planned £12bn upgrade of its broadband network.

It has held discussions with potential buyers including Australian bank Macquarie and sovereign wealth funds, according to the Financial Times.

Openreach, the infrastructure arm of BT, is thought to have been valued at about £20bn – double BT’s market capitalisation.

Openreach manages the company’s broadband network, which is also used by a host of commercial rivals such as Sky and TalkTalk on a wholesale basis. Selling a stake in the business could generate cash for BT at a time when it is embarking on a hugely expensive rollout of fibre optic broadband across the UK, a scheme boss Philip Jansen has said is a top priority.

Speculation about a possible sale of stakes – or an outright sale – of Openreach has been swirling for years after BT faced increased scrutiny from telecoms regulator Ofcom. Rivals had accused BT of failing to properly invest in its network – which some of them relied on – and claimed that Openreach often made decisions in its parent’s favour.

Ofcom ordered BT to legally separate Openreach from the rest of its business in 2017.

Last night a spokesman for BT declined to comment.