By Ian Jones, 1 August 2001 08:00
NEWS BT is coming under severe pressure to change its mind over Earth Lease's $8bn offer to take over control of the local loop. Two of the telco's largest shareholders are believed to want the company to eat humble pie and go back on its decision earlier this week to reject the offer. According to the Financial Times, the shareholders concerned want the sell-off to go ahead as it would rid BT of a non-core business and simultaneously cut its remaining debt significantly. Should the deal go through, Earth Lease - a consortium of private equity investors - would assume control of the 'last mile' of the UK's telephone network and rent it back to BT. Meanwhile, Oftel is set to replace the traditional '192' directory inquiries code with a range of numbers designed to increase competition in the number search market. The watchdog hopes the move will revolutionise the £300m inquiries market, and cut the cost to the consumer by at least 25 per cent.
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