Ares Warns BT Takeover of TalkTalk Would Damage UK Investment

Financial Times··GBUS·Read original
3▲1 ▼1Impact / 5
Summary · why it matters

Ares Management has warned the Government that forcing through a BT takeover of TalkTalk would damage Britain's standing as a destination for international investment. In a letter sent on Sunday to officials, Ofcom and the Competition and Markets Authority, the US private credit giant said the proposed deal would undermine the UK's pro-business credentials and weaken incentives to invest in the UK's network infrastructure. Ares holds a 7pc shareholding in TalkTalk and has lent the business well more than £500m, including over £380m in funding to TalkTalk alone since August 2024, and is itself rivalling BT to take over the debt-ridden broadband provider. The letter also accused BT of stifling a rival bid from private equity firm Epiris and Ares and of abusing its position as a supplier to remove competition from the market. BT's dominance of the UK broadband sector means its takeover would require ministers to override competition laws, with the Government preparing to invoke pandemic-era laws to help rescue the company, and it was reported on Sunday that BT was preparing a new offer after TalkTalk rejected its initial approach.

Impact on assets 3

Financials▼ · 1 stocks
Ares Management LP
ARES
▼ NegativeRegulationrelevance

Ares warns regulators that a forced BT takeover of TalkTalk would damage UK investment and undermine its rival bid.

Cloud & Digital Infrastructure▲ · 1 stocks
BT Group Plc
BT-A
▲ PositiveCompetitionrelevance

BT is pursuing a takeover of TalkTalk and is accused of abusing its supplier position to remove competition, which would strengthen its broadband dominance.

Health Care▲ · 1 stocks

Off-coverage companies 2

TalkTalkPrivate± Mixed
Competitionrelevance

TalkTalk is the takeover target caught between BT's bid and the rival Ares/Epiris approach, with its ownership outcome unclear.

Epiris LLPPrivate± Mixed
Competitionrelevance

Epiris is named as Ares' private-equity partner whose rival bid BT is accused of stifling, but no standalone development about Epiris is given.

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