Bharti Aims to Increase BT Stake, Faces UK Security Review

Bharti Enterprises is reportedly seeking UK government approval to raise its stake in British Telecom (BT) to just below the 30% threshold. This move aims to boost Bharti's economic interest in the telecom giant without launching a full takeover bid. The company currently holds 24.95% and an increase would require a review under the UK's National Security and Investment Act (NSIA).

National Security Scrutiny

Under the NSIA, acquisitions that could pose a national security risk, especially in sensitive sectors like communications, require mandatory notification. Bharti first acquired its significant stake in BT in 2024, buying 24.5% from Altice UK. At the time, Bharti supported BT's management and its ongoing restructuring efforts. The NSIA, introduced in 2021, allows the UK government to scrutinize and potentially block deals deemed a national security threat.

BT's Stock Performance and Bharti's Strategy

Since Bharti's initial investment in 2024, BT's shares have risen by 55%, reflecting Bharti's confidence in the company's value. Bharti Enterprises, which operates extensive telecom services as Bharti Airtel in South Asia and Africa, has stated it has no plans for a full takeover of BT. Sunil Mittal and Gopal Vittal joined the BT board as non-independent non-executive directors in September, strengthening the ties between the companies. The UK government previously approved Bharti's initial stake in 2024 after a national security assessment and assurances from BT, including the creation of a dedicated national security committee.

Sector Context and Analyst Views

As of May 22, 2026, BT Group plc (BT-A.L) had a market capitalization of around £20.2 billion and a P/E ratio of 20.78. The telecommunications sector faces evolving security concerns and regulatory landscapes. The NSIA has specific reporting thresholds for critical acquisitions, like those in public electronic communications networks, with a turnover requirement of at least £50 million. Bharti's initial stake was valued at £3.2 billion, and any further investment will be subject to the current security review. Analysts currently rate BT.A stock as a 'Moderate Buy' with a price target of 207.5p, suggesting potential upside, as of December 16, 2024. BT shares had gained 20% year-to-date at that time.