BT: Billionaire Patrick Drahi raises stake to 18%

Billionaire Patrick Drahi has raised his investment in BT amid growing speculation the telecoms giant could face a takeover bid.

The Israeli-French businessman took his stake from 12% to 18%, prompting an immediate government response it would intervene is necessary.

His company, Altice, said it had no plans to make a full bid, but that could change if circumstances do.

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

The businessman, who also owns auction house Sotheby's, first began buying BT shares in June.

Altice said in a statement: "Over recent months we have engaged constructively with the board and management of BT and look forward to continuing that dialogue.

"We continue to hold them in high regard and remain fully supportive of their strategy, principally to play the pivotal role in delivering the expansion of access to a full fibre broadband network - an investment programme which is so important to both BT and to the UK."

However, his move prompted the government to warn it could intervene if required, with ministers concerned that any pressure on BT to cut costs could affect the ongoing broadband rollout.

A spokesman said: "The Government notes the latest acquisition of BT shares by Altice. We are monitoring the situation carefully.

"The government is committed to levelling up the country through digital infrastructure, and will not hesitate to act if required to protect our critical national telecoms infrastructure."

BT said it noted the purchase, adding that it would "continue to operate the business in the interest of all shareholders and remains focused on the successful execution of its strategy and building on recent performance momentum".