BT shares slide after £340m hit

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The Independent Online

BT shares were back on the ropes today after the telecoms giant disclosed a hit of £340 million from its under-performing IT networks division.

The group said the one-off charge followed a review of the global services arm, which provides services to multinational corporate customers.

BT said a more cautious view of cost efficiencies and contract performance, particularly in light of the economic climate, resulted in the hit. It warned it may have to book further "substantial" charges in the current financial year.

While the company said the rest of its business was performing ahead of expectations, shares in the company slid 14 per cent to 105.7p.

The stock is now back at the 20-year low seen in late October after it first revealed trading problems at the global services division.