Concert leaves BT shares off key

By TREVOR WEBSTER
Updated: 19:00 EST, 7 July 2000

Another day, another headache for BT shareholders. Worries about its Concert global venture with US giant AT&T lopped 20p off the telecoms group's shares yesterday before they recovered to close 19p up at 917p.

At that level they are close to this year's low of 854p and 600p off the peak of 1513p scaled last January.

Reports suggest Concert is struggling to find its feet amid tension between the new venture and BT which is distracted by its own domestic problems.

Observers say global telecoms alliances have a poor record. Both telecoms giants were quick to deny problems with Concert, but BT shares have suffered for months from the bear market in new technology stocks and a succession of its own problems.

This year BT has suffered its first setback in profits since privatisation. It has also been rapped by Oftel for unfairly subsidising its own mobile service providers and has suffered sharp downgrades from analysts.

Chief executive Sir Peter Bonfield has hinted at demerging Concert, the Cellnet mobile phone arm, the Ignite Internet division and the Yellow Pages business.

But there have also been rumours of a European takeover deal or a megabid for a media company.

SG Securities analyst Sean Johnston says BT needs 'something' to stimulate its shares. But cash flow is good and its shares are 'a buy'.