Historic decision: Allison Kirkby

BT has quietly hoisted a sell-out sign on its international arm as plans to transform the group’s fortunes under chief executive Allison Kirkby gain momentum.

The Global division is part of the BT business unit and is led by Bas Burger, who was appointed in April last year.

Global services include the sale of Internet and telephone connectivity to more than 1,000 multinational enterprise customers worldwide.

But the division’s profitability has declined in recent years and earlier this year BT said it was exploring all options for the branch.

A source close to the business told the Mail on Sunday that Kirkby was determined to sell the business and would be willing to listen to offers.

The company is difficult to value, generating £2.4 billion in turnover last year and £500 million in profits, but no cash flow.

The source said Kirkby had made it clear privately that the disposal of non-UK assets was a priority. “Allison is used to making bold decisions and getting things done,” the source added.

Potential buyers include private equity firms. Some were interested in the idea that the company could be turned around over a five-year period. US rival Verizon has been mooted as a potential buyer, analysts say, while tech giants such as Amazon and Microsoft could also be interested.

Selling the room by room division is also an option. Two weeks ago, Macquarie-backed Viatel Technology was considering investing in BT Ireland. In September, Telecom Italia expressed interest in acquiring the remainder of BT’s Italian operations.

BT said: “It could be a single transaction, whichever option maximizes value. » BT’s Business division, which includes the Global unit, represents 40 percent of the group’s turnover. It saw revenue fall 2 per cent to £8.1 billion in the year to the end of March.

Its operating profit fell to £646 million, compared to £898 million in 2023. Global is said to be lagging behind in the Business division, frustrating Kirkby. Karen Egan of Enders Analysis said: “The problem is that Global is selling a lot of existing services that just aren’t very profitable. »

The move comes as BT prepares to reveal its half-year results this week. Under Kirkby, who took office in February, BT’s share price rose 32 per cent. Analysts are awaiting updates on the performance of Openreach, which runs the UK’s broadband network.

They will also want to know what role artificial intelligence will play in the group’s future.

Kirkby is under pressure from three billionaire investors on BT’s share register. In August, it was revealed that Indian telecoms tycoon Sunil Bharti Mittal would buy billionaire Patrick Drahi’s 25 percent stake in troubled Altice. The move comes just a month after one of the world’s richest men, Mexican Carlos Slim, took a 3 percent stake in BT.

Neither Mittal nor Slim have made their intentions regarding BT public.

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