BT link to £1.3bn deal

MCI, a US phone company in which BT has a 20 per cent stake, last night announced a £1.3bn deal with Rupert Murdoch's News Corporation.

The company is the fourth largest telecommunications supplier in the US market and has agreed to take a 10 per cent stake in News Corp. Television shows and other services produced by Mr Murdoch's group will be fed into homes and offices by MCI's network. It is a multi-media combination, as yet barred to BT in the UK, allowing cable firms a chance to develop their businesses.

Full report, page 32