Telecoms giant BT Group plc (LON:BT.A) is looking to rid itself of its scandal-hit Italian business, according to reports over the weekend.
The discovery of deep-rooted accounting fraud in the division sent BT’s stock into a malaise from which it still hasn’t recovered. It also signalled the beginning of the end for the company’s chief executive Gavin Patterson, who stepped down from his position two weeks ago.
The Telegraph reported on Saturday that investment bankers at Credit Suisse have been appointed to “drum up interest” in BT Italia from Vodafone PLC (LON:VOD) and Fastweb, the Italian subsidiary of Swiss telecoms firm Swisscom.
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The sale is not expected to provide “significant proceeds” for BT, though, given that it wrote down the value of the business to zero in the wake of the accounting scandal.
Still, BT is said to see the disposal as a crucial step in its efforts to simplify and modernise its structure.
The newspaper added that BT is also exploring the possibility of selling off some of its other overseas businesses, including its more profitable Japanese and German businesses as well as its Spanish and Latin American assets.
Shares were up slightly to 219p on Monday morning.