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BT Decides Against Pipex Bid

12:57 am on February 10, 2006 | Category: Business, Corporate, Internet

Despite analystsâ€™ predictions earlier in the week, BT has elected not to bid on smaller broadband rival, Pipex Communications. No mention of such a purchase was given in yesterdayâ€™s announcement of financial results.

It appears that, for now, BT is happy with their progress in the broadband market, and doesnâ€™t feel the need to complete costly corporate acquisitions.

The telephone giantâ€™s pre-tax profits increased a better than expected 2% in the final quarter of 2005 with total earnings of Â£568 million. Total sales, meanwhile, were up 8% to Â£4.94 billion. A large portion of this growth is due to expansion in the broadband internet market.

â€œBroadband growth continues to be very strong with the number of BT Wholesale connections now standing at more than seven million. This is pushing the UK to the front of Europe in broadband take up,â€ said BT CEO, Ben Verwaayen.

It appears that rumors of BT paying Â£350 million for its smaller competitor will be put to rest for now, but if the WiMAX wireless broadband standard hits it big in the years to come, there may be increased reason to make a bid for Pipex.

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