The share price of BT could be poised to double to 200p according to rumours that say that potential buyers are circling the telecoms firm as its share price of just over 100p is at a 10 year low.
Recently BT revealed that COVID-19 is taking its toll on the prospects for the business as revenue fell by 7% – with BT Sport playing a key part in the declining revenues.
And today Sky News is reporting that it has asked advisers to help it defend a potential £15bn takeover – although there are no known potential suitors on the table at the moment.
Interestingly, the report also claims that ‘many bankers’ believe the true value of BT is closer to 200p per share rather than the 100p it is trading at right now.
News of loose takeover rumours for Cineworld were enough to send the shares flying by 50 percent earlier this month.
Speculative and long-term investors alike will be hoping for something similar for BT in the coming weeks.
Exclusive: BT Group has asked City advisers to help defend it against a potential £15bn takeover approach after the suspension of its dividend for the first time since its 1984 privatisation sent its shares sliding to their lowest level in over a decade. https://t.co/TtckupuHh5— Mark Kleinman (@MarkKleinmanSky) August 22, 2020
BT currently has a market cap of £10bn.