BT forced to add to debts

£65m because of a deal it signed in '99...

BT will be forced to increase its stake in Blu, adding to its debt mountain to the tune of £65m, because of a deal it signed in 1999 with Italian TV broadcaster Mediaset.

The terms of the agreement allow Mediaset to offload its own nine per cent stake in the mobile operator to BT at a given price if no other Blu shareholders whish to take up the offer.

Mediaset put its stake up for sale at the end of October, according to the Financial Times, and there is a 30-day time limit for others to express an interest.

BT is understood to be keen to sell its existing 20 per cent stake in Blu, so adding a further nine per cent will be a bitter pill for shareholders to swallow.