The BT (LON: BT) share price has jumped in the past two straight days as investors wait for the next decision by Patrick Drahi, the French billionaire. The stock is trading at 182.90p, which is about 4.8% above the lowest level this year.
Why is BT Group rising?
BT Group is one of the biggest telecom companies in the UK. The firm has millions of household and corporate customers, who it provides with communication and data solutions.
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The company has been in the spotlight in the past few months. The most recent news was the company’s decision to exit its sports broadcasting business. After months of evaluation, the company decided to create a joint venture with the newly formed Warner Bros. Discovery. The JV is now being investigated by the competition authority.
Another important news was the decision by Patrick Drahi to acquire a stake in the company. Drahi is a French billionaire who owns Altice, a global company that has operations in the US and France. In December, he decided to add into his stake, becoming the biggest shareholder in the firm.
Now, the acquisition has come to the spotlight of UK regulators who are assessing the security implications in the company. They worry that foreign ownership of a company as important BT could pose challenges to the economy.
According to Bloomberg, there is a likelihood that Drahi could partner with Deutsche Telekom to restructure the company. Deutsche has a 12% stake in the company, meaning that the two own a third of the company. The board also expects to receive a takeover bid in the coming months.
It is unclear whether Drahi will decide to acquire a company that is valued at over $17 billion. Drahi’s entities have over $58 billion in debt.
BT share price forecast
The daily chart shows that the BT stock price has been in a tight range in the past few months. A closer look shows that the stock has formed a symmetrical triangle pattern that is shown in black. The stock has moved to the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the neutral point at 50.
Therefore, there is a likelihood that the BT share price will remain in this range as investors wait for the company’s news. The target of the stock is at 176p, which is along the lower side of the ascending trendline.
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Source: https://invezz.com/news/2022/06/14/with-the-bt-share-price-at-182p-is-it-a-buy-or-sell/