UK likely to oppose Sunil Mittal's move to increase BT stake: Report
New Delhi, May 28
The British government is expected to oppose any attempt by Bharti Enterprises Chairman Sunil Bharti Mittal to increase his stake in telecom group BT, citing concerns around maintaining sovereign control over critical national infrastructure, a report has said.
A report published in the Financial Times said -- citing people familiar with the matter -- that the UK government would resist any move by Bharti to expand its ownership in the British telecom operator beyond current levels.
According to the report, a spokesperson for Mittal declined to comment, while BT also did not comment.
The development comes days after reports suggested Bharti Enterprises was exploring the possibility of increasing its stake in BT to just below the threshold that would trigger a mandatory takeover offer for the company.
Bharti currently holds a 24.95 per cent stake in BT.
A Bharti spokesperson had earlier said the company was satisfied with its existing shareholding and currently had no plans to increase its stake further.
In September last year, Sunil Bharti Mittal, founder and chairman of Bharti Enterprises, along with Gopal Vittal, vice-chairman and managing director of Bharti Airtel, joined the BT board as non-independent non-executive directors.
Earlier this month, Mittal said he intends to gradually hand over leadership responsibilities to the next generation over the next decade while expressing a preference for Bharti Telecom to eventually regain majority control.
"If you really ask me, my own wish is that in the next decade, I know it is hard to put in years on it and then next decade. As I kind of come to a point where I hand over the reins to the next generation and shareholders, Bharti Telecom should get back to controlling shareholding 51 per cent or just over 50 per cent," Mittal said in the company's concall.
Shares of Bharti Airtel settled flat at Rs 1,851.25 apiece on the BSE on Wednesday.
— IANS
Reader Comments
Honestly, I see the UK's point about critical national infrastructure. We would do the same if a foreign company tried to gain majority control of BSNL or RailTel. That said, 24.95% is a significant stake already, and having Mittal on the board is good for BT's India operations. 🤔
Mittal's ambition is admirable, but timing seems off. The UK is in a post-Brexit protectionist phase, and telecom is sensitive. Why risk spoiling the current cordial relationship? BT's share price hasn't exactly been stellar either. Focus on expanding Airtel's 5G and digital India initiatives instead, sir.
This is pure double standard. When Chinese companies want to invest in telecom infrastructure in Europe, it's about 'security risks'. Now when an Indian company does it, same excuse is used. At least Mittal is a known business figure with clean track record. UK needs to decide if they want Indian investment or not. 🇮🇳
I'm torn. On one hand, Mittal is a visionary who turned Airtel into a global brand. On the other, BT provides critical network services in the UK. Maybe a compromise would be to allow gradual stake increase while maintaining special government oversight? Business is business, but national security is also important. 🤷♀️
Western perspective here: this isn't about racism or double standards per se. The UK government has a responsibility to protect critical infrastructure. They would react similarly to any foreign entity, be it Indian, American, or European. BT's network handles sensitive government communications. 25%
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