Rough ride for BT on mobile spin-off

BRITISH Telecom faces a rowdy reception at its shareholders' meeting in Birmingham's National Exhibition Centre today to approve the spin- off of mobile arm, mmO2.

Unions say 'several hundred workers' will tell BT chairman Sir Christopher Bland and the board that the spin-off has no commercial justification and will inflict long-term harm on BT.

The unions have been lobbying politicians and BT's biggest investors to scrap the proposals, but few in the City expect them to succeed. The spin-off needs a 75% vote. Fund managers say their backing for BT's £5.9bn rights issue implied support for the spin-off. Most expect the move will leave mmO2 vulnerable to a takeover.

BT has told Consignia (the Post Office) that it is interested in managing its pool of vehicles. Its shares fell 7 3/4p to 342 1/4p.

Stay on hold for BT