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The group owns EE, Britain’s largest mobile phone network, but its prize asset is Openreach. Mr Jansen hopes to pay for the fibre rollout from cashflows and will save about £2.5 billion by suspending the dividend. Some analysts are sceptical, fearing that he will have to find a co-investor or will need to raise money through a share sale.
What is beyond dispute is the long-term value of fibre networks, which are expensive to build but will throw off prodigious amounts of cash for years to come. The mood music from Whitehall should give Mr Jansen some comfort. The government has made universal fibre broadband a priority.
BT faces competition from a clutch of well-funded fibre players, but if Mr Jansen gets it right, Openreach will be the dominant provider of fibre broadband for years to come.
In May, this column advised potential investors to avoid BT as the journey to the future would be arduous and expensive. However, for those willing to weather a few years of turbulence, BT is worth a look.
ADVICE Buy
Looks like pricey is getting out fast
Even if it turns out to be false, I think it still shows BT is undervalued. “The deal could value Openreach at about 20 billion pounds ($24.42 billion), which is nearly double the current market capitalization of BT as a whole, and help the company fund plans to upgrade its broadband network, the FT reports.“
Looks like CBD is moving into the mainstream
https://t.co/VzOwn32lKB?amp=1
From sky news
Why are you still posting here Diamond if you’re not invested?
With £15 million MCAP, plus the other 3000 barrels per day from the other wells, plus West Denver and other prospects. Share of the year?
Is my basic maths wrong or are HNR making around $7 million gross from these wells?