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BT rules out sale of Global Services

2014-11-17 09:41:00| Telecompaper Headlines

(Telecompaper) BT has ruled out selling its BT Global Services IT outsourcing subsidiary in the face of several shareholders wanting it to spin off the business, the Telegraph reports. BT is understood to have recently held internal discussions about a potential sale that could raise about GBP 10 billion. BT told the newspaper over the weekend of 15 November, "BT has no plans to sell its Global Services division. It is a much improved part of the business and we are pleased with the continued progress it is making." A rapid expansion of Global Services led to two profit warnings that in 2009 took BT to its lowest share price since privatisation. Although it is still the group's lowest-margin division, Global Services has cut costs and reorganised to increase its efficiency in the last five years.

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