Billionaire’s stake in BT faces security probe

The government is to examine French billionaire Patrick Drahi's increased stake in BT over national security concerns, the telecoms giant has said.

The business secretary will now probe the move using new powers under the National Security and Investment Act.

BT said it would co-operate with the review.

In a statement, BT said that Business Secretary Kwasi Kwarteng was exercising his "call-in power" under the National Security and Investment Act 2021.

The new legislation came into force earlier this year, giving the government powers to scrutinise, impose conditions on, or block acquisitions on national security grounds.

BT is in the middle of a transformational programme to build a national broadband fibre network, a strategy crucial both to the company and the government, which says it wants to boost regional growth.

Shares in BT fell more than 4% in morning trading in London.

Mr Drahi, who also owns auction house Sotheby's, first began buying BT shares last June. His purchase of just over 12% of the company, worth £2.2bn at the time, made him the largest shareholder.

He now owns 18% of BT - 12% short of 30% at which point the takeover rules would force him to make an offer for the whole company.

Mr Drahi's stake-building in BT sparked rumours about other possible bidders.

When news emerged of his increased stake in BT in December, the government insisted it would intervene if necessary.

Altice said then that it had no plans to make a full bid, but that could change if the circumstances did.