BT prepares to take £2bn hit

NEWS BT will be forced to reassess the value of some its most prized European assets in what weekend reports suggest will culminate in a £2bn write-down. According to a number of the Sunday papers fixed-line telecoms businesses in Germany and Holland - represented by Viag and Telfort respectively - are proving a drain on resources. BT paid $4.bn for Viag just under two years ago. Both businesses are thought to be loss-making. Analysts believe a write-down of up to £2bn is the most likely outcome although some shareholders are thought to favour a mass sell-off of all continental European interests. Meanwhile, the Independent on Sunday reports that new BT boss, Ben Verwaayen is preparing to shut down Affinitis, the company's services and infrastructure division. Critics say Affinitis was an ill-conceived notion from the outset, creating confusion among BT customers who saw little difference between its role and that of consultancy and integration business, Syntegra. Affinitis currently employs 6,000 people.