NEW DELHI — The British government is expected to oppose any attempt by Bharti Enterprises Chairman Sunil Bharti Mittal to raise his stake in telecom group BT, amid concerns over sovereign control of critical national infrastructure, according to a report.
The Financial Times reported, citing people familiar with the matter, that the U.K. government would resist any move by Bharti to expand its ownership in the British telecom operator beyond its current level.
A spokesperson for Mittal declined to comment, while BT also did not comment, according to the report.
The development follows recent reports that Bharti Enterprises was exploring the possibility of increasing its stake in BT to just below the threshold that would require a mandatory takeover offer.
Bharti currently owns a 24.95% stake in BT.
A Bharti spokesperson had earlier said the company was satisfied with its existing shareholding and had no current plans to increase its stake.
In September, Mittal, founder and chairman of Bharti Enterprises, and Gopal Vittal, vice chairman and managing director of Bharti Airtel, joined BT’s board as non-independent non-executive directors.
Earlier this month, Mittal said he intends to gradually hand over leadership responsibilities to the next generation over the next decade. He also expressed a desire for Bharti Telecom to eventually regain majority control.
“If you really ask me, my own wish is that in the next decade, I know it is hard to put in years on it and then next decade. As I kind of come to a point where I hand over the reins to the next generation and shareholders, Bharti Telecom should get back to controlling shareholding 51 per cent or just over 50 per cent,” Mittal said during the company’s conference call.
Shares of Bharti Airtel closed flat Wednesday at Rs 1,851.25 on the BSE. (Source: IANS)
