Carlos Slim Acquires 3.2% Stake in BT, Signaling Confidence in Telecom Giant

Carlos Slim, the wealthiest individual in Latin America, has acquired a 3.2% stake in BT, a move that analysts consider a surprising yet strong endorsement of the British telecom company’s prospects. Slim, whose net worth is approximately $93 billion, now holds a stake worth around $512 million in the FTSE 100 firm through his company, Control Empresarial de Capitales SA de CV, as disclosed in a BT filing on Wednesday.

On Wednesday, BT shares saw a 1.1% increase. In its latest financial report, BT posted flat revenue of $26.58 billion, compared to $26.46 billion the previous year, while its profit before tax declined by 31%. BT welcomed Slim’s investment, stating, “We welcome any investor who recognizes the long-term value of our business” and expressed an interest in engaging with Inbursa, akin to their interactions with other investors.

The investment is an unexpected development, highlighting Slim’s confidence in BT’s strategic direction and growth plans under the leadership of CEO Alison Kirkby. Last month, BT shares surged 17% following an upgrade in its cash flow guidance and an increase in its dividend. Over the past month, the stock has risen by more than 20%, despite being down about 3.4% over the past year.

Slim’s investment reflects the positive momentum BT has experienced recently. This momentum is partly attributed to Kirkby’s announcement of a $3.83 billion cost-saving initiative and a strategic shift to enhance BT Business. Slim’s investment portfolio includes significant holdings in telecoms group América Móvil, his conglomerate Grupo Carso, and financial services firm Inbursa. With this move, he joins French billionaire Patrick Drahi, who owns a 24.5% stake in BT through his Altice telecoms group, despite facing substantial debt.

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