BT shares rose to their highest level of the year after Mexican billionaire Carlos Slim acquired a 3 percent stake.
The British telecoms giant rose 4.3 percent, or 5.6 pence, to 135 pence – giving it a value of £13.4 billion – as it gained 20 percent since Allison Kirkby became CEO in February.
The rally came after Slim – once the richest man in the world – acquired a 3.2 percent stake through his family business Inbursa.
The Mail understands BT was not aware of the investment until it was disclosed to authorities.
Slim is the latest high-profile investor on the share register, joining billionaire telecoms magnate Patrick Drahi and German group Deutsche Telekom.
Bet: BT shares rose 4.3%, or 5.6p, to 135p – valuing it at £13.4bn – after Mexican billionaire Carlos Slim (pictured) picked up a 3% stake
The backing of one of the richest men in the world can be seen as a vote of confidence in BT under Kirkby.
But Slim’s motive remains unclear and sources say he has not yet contacted BT, a spokesperson for the Mexican saying only that it is a “financial investment as many of the group are doing.”
So who is Slim, and why is he keeping an eye on the company?
The businessman, 84, made his fortune through telecoms giant America Movil, which dominates the Latin American market with 384 million customers.
His parents are Lebanese, but moved to Mexico as children. His father Julien Slim Haddad opened a dry goods store in Mexico City before buying cheap real estate.
This financial knowledge was passed on to his children and by the age of 12, Slim had shares in the Bank of Mexico and was eager to become an entrepreneur.
Starting out as a stockbroker, Slim bought major stakes in Mexican construction, consumer goods, mining and real estate companies.
At one point he had a 17 percent stake in The New York Times newspaper.
But its real money spinner was America Movil, which was founded in 2000 and saw Slim become the richest man in the world in 2010.
His empire suffered from Donald Trump’s victory in the 2016 US presidential election, when global markets plunged and the Mexican peso fell to a record low.
He fell down the wealth rankings and today he is the 17th richest person in the world, with a fortune of £72 billion.
However, those close to Slim say he remains relatively frugal despite his vast wealth. He has reportedly lived in the same six-bedroom house for 40 years and has kept things in the family by dividing his empire between his three sons and three daughters.
His advocacy for BT will raise eyebrows over whether British telecoms is becoming a foreign affair.
UAE-based group E& recently bought a 14 percent stake in Vodafone, while Xavier Niel, the French billionaire founder of Iliad, owns a 2.5 percent stake.
At BT, Switzerland-based Drahi is the largest shareholder with a 24.5 percent stake, while Deutsche Telekom has a 12 percent stake.
Slim’s 3.2 percent stake is valued at £430 million. stake, while Deutsche Telekom has a 12 percent stake. Slim’s 3.2 percent stake is valued at £430 million.
On the rise: BT rose 4.3%, or 5.6p, to 135p – giving it a value of £13.4bn – as it made profits since Allison Kirkby (pictured) took over as CEO in February to 20%
Enders Analysis telecoms expert Karen Egan said Slim could shift power away from Drahi, whose importance has fueled speculation that he may want to launch a takeover bid.
“It will further dilute any prospect Drahi had of having influence at BT,” she said.
Kester Mann, an analyst at CCS Insight, said Slim may be eyeing a bigger stake himself – and could even buy out Drahi.
“Slim’s move on BT could provide a bridgehead after he recently reduced his stake in Dutch operator KPN,” he said. “If that’s the case, he may find a willing seller in Patrick Drahi.”
BT’s share price is still down more than 70 percent since its 2015 peak and Slim’s investment comes at a crucial time.
Some analysts believe the move is a vote of confidence in Kirkby.
Last month she outlined her blueprint, which included a further £3 billion in cost cuts, sending the shares up more than 17 per cent in a single day.
As such, the latest surge thanks to Slim’s investment will no doubt be welcomed by Kirkby and her lieutenants.
However, the board, led by chairman Adam Crozier, will want to know what exactly Slim is planning to do.
Sophie Lund-Yates, analyst at Hargreaves Lansdown, said: ‘It potentially opens the door to some interesting developments in the future.’
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