BT Share Price Analysis Amidst Escalated Takeover Speculation

  • BT share has witnessed massive bearish bias over the last few months.
  • Markets remain concerned about the firm’s growth prospects.
  • Many analysts trust BT will become a buyout stock.

BT share has seen a massive bearish bias within the previous few months, despite rising speculations about the firm’s acquisition. The stock has recorded downtrends over the previous ten consecutive weeks, changing hands at its lowest zone since February last year. Meanwhile, it has declined by nearly 40% from its 2022 high.

BT Group Acquisition

United Kingdom companies have attracted significant bids from American and private equity companies within the last few months. Some names that have seen acquisitions are Avast, Melrose Industries, and Morrison’s.

International investors trust United Kingdom firms are massively undervalued because of Brexit and concerns about competition. Most notably, the British pound declined by over 20% in 2022. That means American companies would spend less to buy UK firms.

Thus, BT Group has attracted attention as far as company acquisition is concerned. An informal interview of eighteen fund managers and economists trust the company has a higher acquisition score. Remember, seven of the ten companies on this list come from the United Kingdom, including firms such as Darkrace, Burberry, Playtech, and Entain.

Debates about the company’s acquisition have circulated for months. The speculation surged when Patrick Drahi, Altice’s head, purchased a stake in the company. He owns around 18% of BT Group and remains the top stakeholder.

Still, a potential deal has some challenges. For instance, BT is the leading telecommunication firm in the United Kingdom. Therefore, the British government will assess any bid. Another hurdle is BT has massive pension liabilities.

BT Share Price Prediction

According to the weekly chart, the BT share has seen amplified pressure within the last few months. It created a triple-top setup. Also, the 25- and 50-week MA made a bearish cross while the AO (Awesome Oscillator moved under the neutral mark.

Thus, the stock can keep declining, eying the support mark at 100p. A move beyond the resistance at 135p will cancel the bearish outlook.

Feel free to share this content.

Leave a Reply

Your email address will not be published. Required fields are marked *