Private equity should make its move for struggling UK companies

Money is cheap and bargains abound – it’s a great time for private equity funds to make a bid for some struggling companies, says Matthew Lynn.

BT van © BT Openreach
BT: a promising target for private equity
(Image credit: © BT Openreach)

For BT’s long-suffering shareholders, it was the first sliver of good news in a long time. On Monday the share price suddenly spiked following reports that the telecoms giant had started asking its advisers to prepare a defence against a bid from a consortium of private-equity investors. It might happen and it might not. But what is clear is that BT is ripe for a takeover.

BT’s dismal conjuring act

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.