BT share price: Bosses tell staff they back remaining in reformed EU

on Jun 14, 2016
Updated: Oct 21, 2019

BT Group’s (LON:BT.A) chair and chief executive have told staff in an email that they back remaining in a reformed European Union, Sky News has reported. The email, however, has stopped short of telling the group’s 80,000 staff how to vote in next Thursday’s referendum.

BT’s share price has fallen into the red in today’s session, having lost 1.76 percent to 403.70p as of 09:30 BST. The fall is part of a broader market selloff which has seen the benchmark FTSE 100 index dip 1.04 percent to 5,982.01 points so far this morning.
Sky News reported yesterday that BT’s employees were told that the group’s chief executive Gavin Patterson and chair Sir Mike Rake backed the UK’s remaining in a reformed EU. The email, which was also signed by Communication Workers Union deputy general secretary Andy Kerr and Ben Marshall, national secretary and Prospect union representatives, reportedly refers to independent research which suggests that the economy will suffer as a result of a potential Brexit.

“The vote will have an impact on the economy, and knock-on effects on companies operating in the UK,” the email said, as quoted by the newswire. “That includes us at BT, and it is one of the reasons we favour the UK remaining inside a reformed EU.”
Sky News also quoted Leave campaigners as dismissing the letter, branding the notion of a reformed Europe as “meaningless and hollow”.
“Everyone knows that re-negotiation was an utter failure that achieved nothing,” Matthew Elliott, chief executive of Vote Leave, told the newswire.
In other BT news, analysts at Societe Generale remain bullish on the stock, reiterating their ‘buy’ rating on the former telecoms monopoly yesterday, with a price target of 545p.
“Trends are strong, savings on track and external headwinds look to us to be easing,” the analysts said, as quoted by Proactive Investors.
As of 09:51 BST, Tuesday, 14 June, BT Group plc share price is 403.50p.