BT shares hit a one-year high
BT shares are at a one-year high after billionaire Carlos Slim bought a 3% stake in the company


BT shares hit a one-year high recently after Mexican billionaire Carlos Slim bought a 3% stake through his family holding company, says Leah Montebello in This is Money.
Slim is the “latest high-profile investor”, alongside billionaire telecoms tycoon Patrick Drahi and Germany’s Deutsche Telekom. The backing from one of the world’s richest men may be seen “as a vote of confidence” in CEO Allison Kirkby, with BT’s value now 20% higher since her arrival in February.
But Slim’s motives for buying are “unclear”. Kirkby’s “short-busting” strategy of upping BT’s dividend and making promises about its future free cash flow may have attracted Slim’s attention, says the Lex column in the Financial Times.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Or he may be after “the stability of a utility’s cash flow”; it looks as if “group capital expenditure has peaked”. Either way, less affluent BT shareholders “might take heart from Slim’s interest”, given that there is “scant evidence that the doubters have taken flight”: BT’s return, including dividends, has lagged the FTSE 100 by 11% over a year. Slim’s investment also provides insurance against the possible departure of the “cash-strapped” Drahi, who owns nearly a quarter of BT.
Experts think that Slim’s investment is most likely to be “an opportunistic strategic investment aiming to capitalise on BT’s still fairly depressed share price”, says James Warrington in The Telegraph. But it could also be “a beachhead to taking a stronger position” in the stock. He has been behind failed takeover bids at Dutch telecoms firm KPN, Telecom Italia and Portugal Telecom.
What’s more, it is only the latest example of a foreign billionaire “snapping up shares in British telecoms giants such as BT and Vodafone”. At the very least, this “string of foreign billionaires on share registers means change could be on the horizon – and bosses will have to be on their guard”.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
Pinewood Technologies: a drive for growth
Pinewood Technologies’ platform is one of the best in the business. Investors should buy in
-
'EV maker Faraday Future will crash'
Faraday Future Intelligent Electric is failing dismally to live up to its name, says Matthew Partridge
-
Investors should cheer the coming nuclear summer
The US and UK have agreed a groundbreaking deal on nuclear power, and the sector is seeing a surge in interest from around the world. Here's how you can profit
-
8 of the best houses for sale with follies
The best houses for sale with follies in the grounds – from a five-storey Victorian Gothic tower in Tonbridge, Kent, to a former mill in Oxfordshire with gardens that include a folly on an island in a lake
-
A tale of two Reits – why performance matters for valuation
AEW UK and Regional are two Reits that are valued very differently, despite a shared focus on properties outside London
-
Healthcare stocks look cheap, but tread carefully
Shares in healthcare companies could get a shot in the arm if uncertainty over policy in the US wanes, but are they worth the risk?
-
The Palace of Westminster is falling down
The Palace of Westminster is in need of repair, but the bill is prohibitive, says Simon Wilson
-
'It’s time to buy British equities'
Opinion There is no better place to start investing in UK equities than with two of MoneyWeek’s favourite investment trusts, says Max King