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BT share price: shareholders call for network split to boost shares

Amid the hunt for a new Chief Executive Officer, following the iminent departure of Gavin Patterson, BT shareholders have been calling on the telecoms giant to consider dividing up its network to boost share prices, according to a report in the Financial Times. 

As of 11.03 BST, BT share price had added 0.93 per cent to 228.80p, outperforming the UK market with the benchmark FTSE index currently standing 0.22 per cent higher at 7584.26 points.

Search for new CEO

BT is in the process of looking for a new CEO to replace Patterson who remains in position until someone new is appointed. Jan du Plessis, chairman, hopes will be filled by the end of the year, reported the FT.

In a bid to improve the telcomms company’s performance and radically decreasing share prices, Patterson planned to axe 13,000 jobs, a plan which Mr du Plessis says will continue in light of backing from shareholders.

A split would be ‘timely’

The report in the FT on Monday pointed to a top- 10 shareholder who said that Mr du Plessis’s appointment as chair last year, coupled with an incoming chief executive, would make for a timely re-examination of the business's structure, stating: “They should analyse the strategy and come back and tell more about what they want to do. It should be their decision, but there is more chance of a split happening now with a new CEO and chairman. The shareholder continued: “I wouldn’t want to be told as CEO that you can’t break it up. You have be able to add value.”

 

As of 11:12 BST, Wednesday, 22 August, BT Group plc share price is 386.85p.

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