BT (BT) is reportedly a takeover target for Deutsche Telekom. The German company already owns 12 per cent of BT, and according to The Telegraph, BT is working on its takeover defence with advisers from investment banks Robey Warshaw and Goldman Sachs.
This same morning this report came out, BT announced it is looking for a new chief executive to replace Philip Jansen. The company said Jansen had “informed the Board that at an appropriate moment over the next 12 months he intends to step down from his role”.
The share price is unmoved this morning. Either investors don’t think much of the takeover rumours and Jansen’s importance to the business, or these two bits of news are working to cancel each other out. AS
Read Phil Oakley’s BT analysis here
Thames funding gives listed water a little respite
Listed water investors responded favourably to the news that debt-laden private utility Thames Water has tapped a £750mn equity commitment from its investors. But Thames said this morning that the funding is depending on certain conditions, including a turnaround business plan, and it expects to need around £2.5bn of further equity support in the 5 years from 2025.
United Utilities (UU) and Severn Trent (SVT) rose by 1 per cent in early trading, while Pennon (PNN) was up by 2 per cent. The shares have fallen over the last week as the sector’s debts and regulatory future have come under the spotlight. CA
Read more: Water utilities slump as better 'bond proxies' come to the fore
Unite and Big Yellow post rent increases
Unite (UTG) and Big Yellow (BYG) both posted rental increases in their Q1 updates after a challenging year for real estate investment trusts (Reits). Student accommodation Reit Unite has sold a record 98 per cent for the next academic year. It expects to reach full occupancy and achieve rental growth of 7 per cent, up from a rental growth prediction of 6 to 7 per cent earlier this year and 350 basis points more than the 3.5 per cent rental increase it recorded in the last academic year.
Meanwhile, self-storage Reit Big Yellow recorded a drop in closing occupancy but an 8 per cent increase in closing net achieved rent per square foot. ML
