Openreach valuation confusion amidst Macquarie approach rumour

15 May 2020 - 12:00 am UTC

Analysts have set a wide range of valuations between GBP 12bn and GBP 25bn for BT’s Openreach business, as the UK-listed company battles rumours that investors including Macquarie are preparing bids for the fibre business.

UBS analysts said that they are “wary” of the idea that Openreach could sell at a premium to its mean capital employed – a measure of assets minus liabilities – of GBP 13.8bn.

Unlike utilities that trade well ahead of their regulated asset bases, Openreach, which operates the main fixed line network in the UK, does not have same monopoly position, said UBS.

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