UK Broadband ISP Merger News 2: BT eyeing PlusNet?

12 Oct 2006

UK incumbent BT Group is reportedly in talks to buy broadband ISP PlusNet, according to the Independent citing industry sources. PlusNet shares surged more than 18% on the back of the report yesterday. It recently admitted that its consumer broadband business had been hit hard by the launch of cut-price deals by Carphone Warehouse, Orange and BSkyB, warning that ‘uncertainty caused by new mass market entrants’ would likely hurt growth rates in the short term. PlusNet posted revenues of GBP35.2 million (USD65.5 million) in 2005 and had 198,000 customers at the end of June 2006; BT had 2.83 million retail broadband customers at that date. Both companies declined to comment.

United Kingdom, BT Group (incl. Openreach)