BT’s purchase of TalkTalk is cosy – but probably politically sensible | Nils Pratley
For all the howls of a ‘stitch-up’, it’s hard to see what ministers were supposed to do, as the alternatives risked worse outcomes “All the characteristics of a stitch-up masked as a rescue deal in the public interest,” thundered Virgin Media O2. It’s not an unreasonable view of BT’s hurried weekend acquisition of TalkTalk . Once upon a time, TalkTalk was seen as a plucky upstart performing the…
Ministers faced a difficult decision when BT announced its acquisition of TalkTalk, described by Virgin Media O2 as "a stitch-up masked as a rescue deal in the public interest." The acquisition occurred via a pre-pack administration, which helped to minimize short-term political headaches. TalkTalk was once a small, disruptive player challenging BT's dominant position in the broadband market; now, it is being absorbed by the larger company.
Despite the outrage, the culture secretary, Lisa Nandy, had few options, as alternative approaches, such as a chaotic collapse of TalkTalk without a rescue plan for customers, would have resulted in even worse outcomes.
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