British Telecom announce £6bn share issue -- and other news

10 May 2001Emma Nash

10 May 2001Emma Nash

British Telecom to announce rights issue
The Independent, The Daily Telegraph and Financial Times carry prominent pieces on today's launch of BT's £6bn share issue. The Independent fanfares the rights issue together with news of the de-merger of mobile phone division Cellnet and a likely slashed dividend to shareholders. The Financial Times details the share offer but in terms of the break up of the company.

Sage says it can survive slowdown
The Guardian leads off on the view from accountancy software company Sage that despite the US slowdown the company expects to report "satisfactory results". Pre-tax profits rose by 10% to £59.2m. The Financial Times focuses on Sage's dismissal of the idea of ASPs -- renting software over the Internet. It would not happen in the next three or four years, if ever, said the company.

Spirent issue profit warning
The Times, Daily Telegraph and Guardian carry news of a profit warning from Spirent, the maker of telecoms test equipment. The news wiped 17% off the share price value as the company blamed the US economy and reduced customer spending for its downturn in fortunes.

Worldcom completes successful bond issue
The Times, Daily Telegraph and Financial Times report on the successful £8.2bn bond flotation by US telecoms company WorldCom. The Times interprets the float as good news for BT and its forthcoming share issue. The Financial Times looks more deeply into the company and the significance of the bond issue within the overall overhaul of the company.

Homepage virus comes in from Australia
The Daily Telegraph and Times report the arrival in the UK of the Homepage computer virus that connects recipients to pornographic Web sites. The virus, feared to be more virulent than the Lovebug virus, came from Australia where it infected government offices.

Mobile Internet help boost profits at Japanese Telecom
The Guardian reports how Internet profits helped boost earnings at the Japanese Telecoms company NTT DoCoMo. Profits leapt by 45% last year despite a sluggish domestic economy. The Financial Times takes a more downbeat approach reporting possible big losses due to the collapse of the telecom sector.

Best of the rest

The Financial Times reports

  • Sonera, the Finnish telecommunications group, has sold 17.4% of its shares in Voicestream


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