BT shares soar after Mexican billionaire Carlos Slim takes a 3% stake
BT shares raced to their highest level of the year after Mexican billionaire Carlos Slim snapped up a 3 per cent stake.
The British telecoms giant rose 4.3 per cent, or 5.6p, to 135p – giving it a value of £13.4billion – as it took gains since Allison Kirkby became chief executive in February to 20 per cent.
The rally came after Slim – at one point the world’s richest man – snapped up a 3.2 per cent holding through his family business Inbursa.
The Mail understands BT only found out about the investment when it was disclosed to the authorities.
Slim is the latest high-profile investor on the share register alongside billionaire telecoms tycoon Patrick Drahi and German group Deutsche Telekom.
Stake: BT shares rose 4.3%, or 5.6p, to 135p – giving it a value of £13.4bn – after Mexican billionaire Carlos Slim (pictured) snapped up a 3% stake
The backing from one of the world’s richest men may be seen as a vote of confidence in BT under Kirkby.
But Slim’s motive remains unclear, and, according to sources, he has yet to make contact with BT, a spokesman for the Mexican stating only that it is a ‘financial investment like many the group makes’.
So who is Slim, and why is he eyeing up the company?
The businessman, 84, made his fortune through telecoms giant America Movil, which dominates the Latin American market with 384m customers.
His parents are Lebanese but moved to Mexico as children. His father Julien Slim Haddad opened a dry-goods store in Mexico City before snapping up property on the cheap.
This financial savvy was passed on to his children and by the age of 12 Slim had shares in the Bank of Mexico and was keen to be an entrepreneur.
Starting as a stockbroker, Slim bought major stakes in Mexican construction, consumer goods, mining and property firms.
At one point he held a 17 per cent stake in The New York Times newspaer.
But his real money spinner was America Movil, which was formed in 2000 and saw Slim become the world’s richest man in 2010.
His empire suffered following Donald Trump’s US presidential election win in 2016 as global markets tumbled and Mexico’s peso fell to a record low.
He fell down the wealth rankings and today he is the 17th richest person in the world, with a £72billion fortune.
However, those close to Slim say that despite his mega wealth, he remains relatively frugal. He has reportedly lived in the same six-bedroom house for 40 years and has kept business in the family by carving up his empire between his three sons and three daughters.
His push for BT will raise eyebrows about whether British telecoms are becoming a foreign affair.
United Arab Emirates-based group E& recently bought a 14 per cent stake in Vodafone, while Xavier Niel, the French billionaire founder of Iliad, owns a 2.5 per cent of it.
At BT, Switzerland-based Drahi is the biggest shareholder with a 24.5 per cent stake while Deutsche Telekom has a 12 per cent holding.
Slim’s 3.2 per cent slice is valued at £430million. stake while Deutsche Telekom has a 12 per cent holding. Slim’s 3.2 per cent slice is valued at £430million.
On the rise: BT rose 4.3%, or 5.6p, to 135p – giving it a value of £13.4bn – as it took gains since Allison Kirkby (pictured) took over as chief exec in February to 20%
Enders Analysis telecoms expert Karen Egan said Slim could shift power away from Drahi, whose stake has fuelled speculation that he may wish to launch a takeover bid.
‘It will further dilute any prospect Drahi had of having influence at BT,’ she said.
Kester Mann, analyst at CCS Insight, said Slim may have eyes on a bigger stake himself – and could even buy out Drahi.
‘Slim’s move on BT could form a beachhead, having recently reduced his interest in Dutch operator KPN,’ he said. ‘Should that be the case, he may find a willing seller in Patrick Drahi.’
BT’s share price is still down more than 70 per cent since the peak in 2015 and Slim’s investment comes at a crucial time.
Some analysts believe that the move is a vote of confidence in Kirkby.
Last month she outlined her blueprint, which included another £3billion of cost-cutting, sending shares up more than 17 per cent in a day.
As such, the latest rise on the back of Slim’s investment will no doubt be welcomed by Kirkby and her lieutenants.
However, the board, which is led by chairman Adam Crozier, will want to know precisely what Slim is planning.
Sophie Lund-Yates, an analyst at Hargreaves Lansdown, said: ‘It potentially opens the door to some interesting developments down the line.’
Renishaw chairman to step down
Stepping down: Renishaw co-founder Sir David McMurtry
Renishaw’s billionaire co-founder Sir David McMurtry is stepping down as chairman after more than 50 years in top jobs at the FTSE 250 engineer.
The 84-year-old set up the firm with John Deer in 1973 and has held the jobs of chief executive and then chairman ever since.
He will continue as a non-executive director to offer ‘expertise’ on innovation. Renishaw, which is valued at £3bn and employs 3,000 people in the UK and 2,000 elsewhere praised McMurtry as instrumental in driving its success.
He was knighted in 2001 for services to design and innovation.
His futuristic Gloucestershire home was the setting for the series finale of the BBC’s Sherlock, starring Benedict Cumberbatch, in 2013.
Sir David Grant, a non-executive director, will take over as chairman of the 3D printing giant on July 1.
