BT strikes deal to rescue broadband firm TalkTalk; euro slides amid France debt burden fears – business live

TalkTalk’s wholesale and consumer arms will be sold to BT on a debt-free basis

Key events11m agoIntroduction: BT strikes deal to rescue broadband firm TalkTalk; euro slides amid France debt burden fears TalkTalk offices in west London. Photograph: John Stillwell/PAView image in fullscreenTalkTalk offices in west London. Photograph: John Stillwell/PAKey events11m agoIntroduction: BT strikes deal to rescue broadband firm TalkTalk; euro slides amid France debt burden fearsGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

BT Group has struck a deal to buy TalkTalk out of administration, after reaching an agreement with its largest creditor.

TalkTalk’s wholesale and consumer arms will be sold to BT on a debt-free basis.

BT said it “recognised the risk to the country, and especially vulnerable customers and key public services, should the company collapse”. BT therefore approached the directors of TalkTalk and offered to step in immediately.

By acquiring the business out of administration, BT said it would be providing reassurance for TalkTalk’s employees, its 1.5 million retail customers and its 1 million wholesale customers across the UK. This includes vulnerable households, and connections that support critical national infrastructure providers across health, emergency services, defence, education, transport, banking and government.

During the last 12 months, TalkTalk reported revenues of £1.2bn and was loss-making. It employs 90 people.

Allison Kirkby, BT’s chief Executive, said:

double quotation markThis is a genuinely unprecedented situation, where millions of citizens and businesses were at risk if TalkTalk had collapsed. BT is the digital backbone of the country, with a presence in every postcode. We have been connecting the nation for generations, stepping up in the moments that matter, and BT acquiring TalkTalk is now the only viable option to keep millions of customers connected and supported.

Our immediate priority is to stabilise the business and provide a safety net for the households and businesses who rely on TalkTalk. Once the regulatory process has been concluded, TalkTalk’s customers will benefit from access to the UK’s best network, and the full range of market-leading products and services that BT offers. And, over a period of time, the transaction will create value for all our stakeholders – customers, colleagues, the country, and our owners.

TalkTalk, he UK’s fourth-largest broadband company was founded in 2003 by Charles Dunstone as a subsidiary of Carphone Warehouse. It has struggled in the highly competitive telecoms market, with its customer numbers shrinking from 4 million in 2019 to about 1.5 million.

Read moreIn financial markets, the euro sank to a 17-month low amid concerns over France’s debt burden. The currency tumbled more than 0.8% to $1.1161 in Asia, and is now trading 0.5% lower at $1.1192.

9am BST: Eurozone Services and Composite PMIs final for September

9.30am BST: UK Services PMI final for September

3pm BST: US ISM Services PMI for September