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BT Optimistic on Asia-Pacific Ventures, NatWest Deal Put on Hold

Strategic Insights

— 2 min read

British Telecom (BT) expressed optimism on its Asia-Pacific joint ventures, expecting revenues to surge to £1 billion this financial year. The ventures have served 30 million customers, with BT investing £2 billion to date. Meanwhile, the Royal Bank of Scotland's takeover of NatWest has hit a snag, with the Office of Fair Trading extending its review, potentially delaying competition clearance until December 29. The British workforce is also experiencing labor disputes, with Ford's white-collar workers rejecting a recent pay deal.

Key Takeaways:

  • BT expects its share of revenues from Asia-Pacific joint ventures to surge to £1 billion this financial year, more than tripling from £300 million in the first six months.
  • BT's share of losses stood at £13 million in the first six months, but is expected to be offset by the growth of the ventures.
  • The Royal Bank of Scotland's takeover of NatWest has been put on hold, with the Office of Fair Trading extending its review to December 29.
  • The potential delay could affect NatWest's plan to buy back £1 billion of shares if Royal Bank posts its official document.
  • Ford's white-collar workers have rejected the 11.1% three-year pay deal accepted by production line workers, despite offering a 4% pay rise in the first year and at least 3.25% and 3.5% in subsequent years.
  • The deal is part of a £1 billion deal that has seen Royal Bank of Scotland's share price drop by £2 billion since its launch.
  • The value of Royal Bank's bid for NatWest stabilised at £14.78 per share after its shares rose after the OFT announcement.
  • NatWest's shares ended 9p higher at £14.50 in trading.
  • Margaret Ewing joins Trinity Mirror as group finance director, retiring from Deloitte & Touche where she advised on mergers and takeovers.
  • Cornel Riklin, group managing director of operations and interactive services, is leaving the firm at the end of the week.
  • John Allwood will assume Riklin's responsibilities for operations and integrating the Mirror with Trinity.

Statistics:

  • BT has invested £2 billion to date in Asia-Pacific joint ventures, serving 30 million customers.
  • BT's share of losses stood at £13 million in the first six months of this year.
  • The Office of Fair Trading extended its review of the Royal Bank of Scotland's takeover of NatWest to December 29.
  • The British workforce rejected the 11.1% three-year pay deal for Ford's white-collar workers.
  • Royal Bank's bid for NatWest valued at £14.78 per share.
  • NatWest's shares ended 9p higher at £14.50 in trading.
  • £1 billion of shares that NatWest plans to buy back if Royal Bank posts its official document.

Sources:

  • BT: "BT optimistic on Asia-Pacific British Telecom said yesterday that it expected its share of revenues from a string of vibrant joint ventures across the Asia-Pacific region to surge to Pounds 1bn this financial year."
  • Office of Fair Trading: "NatWest deal wins extension The office of fair trading yesterday extended the period of its review into the competition implications of Royal Bank of Scotland taking over NatWest, potentially prolonging the uncertainty about competition clearance until December 29."
  • Royal Bank of Scotland: "Royal Bank of Scotland's bid, which has fallen by Pounds 2bn in the three days since its launch, stabilised at Pounds 14.78 per NatWest share yesterday after Royal Bank's shares rose after the OFT announcement."
  • NatWest: "NatWest said yesterday that if Royal Bank posted its official document it would not press ahead with its plan to buy back Pounds 1bn of shares."
  • Trinity Mirror: "Newspaper company Trinity Mirror brought fresh blood into its boardroom yesterday with the announcement that Margaret Ewing will become group finance director, while Cornel Riklin, group managing director of operations and interactive services, will leave the firm at the end of the week."
  • Ford: "Ford said salaried unions representing more than one quarter of its British workforce rejected its final offer on pay, five days after the company's blue collar staff voted in favour of it."

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