BT fails to divide and conquer

NEWS BT has rethought its plans to split its retail and wholesale operations. The move means a bid for the company's network infrastructure - even only on a local level - is less likely. Groups from the US and Germany have expressed an interest in such assets. The idea of separating these businesses was first put forward at a time when the telco's debt mountain desperately needed to be addressed. However, post a multibillion-pound rights issue and the imminent spin-off of BT Wireless, now named mmO2, further action is deemed less pressing. Comparable European telcos are relatively more bogged down in debt than BT and there had been fears that more splits could see a de facto break-up and sell off all the telco's assets. Pierre Danon, head of BT Retail, is reported as telling the FT that further moves "no longer look so desperate". silicon.com will be bringing you an exclusive interview with Danon in the coming weeks. For related news see:
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http://www.silicon.com/a47822
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http://www.silicon.com/a40907
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