Embattled telecoms group BT Group plc (LON:BT.A) has purchased around £200mln worth of shares put up for sale by French mobile rival Orange, it confirmed today.
The French mobile group said yesterday it intended to sell 133mln shares out of a total stake of 399mln, even though BT’s share price is currently at close to a four-year low.
Orange acquired the stake when it sold its half of UK mobile group EE to BT in 2016.
BT confirmed today that it had directly acquired 43.4mln shares at 288p to be held as treasury shares, while its Employee Share Ownership Trust bought a further 26mln.
In total, the two purchases were worth £200mln.
BT has been rocked in recent months by an accounting scandal In Italy that prompted a £530mln write-off, worries over the cost of its pension fund and a bruising battle with UK regulator Ofcom over broadband access that resulted in a £42mln fine and a payment of £300mln to its rivals.
Orange added that it also intends to issue £520mln worth of bonds that are convertible into BT shares equal to another third of its holding.
Shares in BT dropped 0.5% to 288.4p.