Within weeks of Sir Keir Starmer’s general election victory, Sunil Bharti Mittal, a self made Indian billionaire, had the opportunity to congratulate the PM on his new job. Mittal was among a group of senior business luminaries invited to meet Starmer and his new top team.
Mittal, 66, is no stranger to such events. An expert networker, he is said to be friendly with India’s prime minister, Narendra Modi, and under the previous Tory government received an honorary knighthood for services to UK-India business relations.
During his exchange with Starmer, Mittal was flanked at his right arm by CS Venkatakrishnan, “Venkat”, the India-born American chief executive of Barclays.
Unknown to the majority of those present, Mittal, known to some in his country as the “telecoms tiger”, was in the final stages of a months-long plot to establish himself as the largest shareholder in one of Britain’s most significant companies, BT. His company, Bharti Enterprises, was being advised by Venkat’s team of investment bankers.
That deal, under which Bharti would acquire the 24.5 per cent stake of the debt embattled Israeli magnate Patrick Drahi for about £3.2 billion, was agreed before last weekend and disclosed to Starmer’s government, ahead of a stock market announcement the next day.
Mittal’s acquisition is not yet complete - Bharti has applied for national security clearance and the process of transferring Drahi’s shares may take months. But allies of Mittal are already speculating about whether the tycoon’s ultimate ambition is to buy the company outright.
Mittal’s main residence is in Delhi but the billionaire, whose wife and children have British citizenship, keeps homes in Mayfair and Scotland. Mittal made it clear that he was supportive of BT’s management, led by the straight-talking Scot, Allison Kirkby, and their strategy. He said that he had not asked for a seat on the board but, setting some alarm bells ringing, he also said that BT needed to be “bolder”.
In the days since Mittal disclosed his investment, The Sunday Times has interviewed ten senior figures either familiar with the top of BT or who know Mittal well. The consensus among them is that, while a charmer who already has a good rapport with Kirkby, he will expect to have an active role at the company. He has so far shown no interest in taking a board seat, but there is speculation he might after his 24.5 per cent stake is secured.
“In spite of what Sunil says, he’s bought it because he thinks it’s undervalued,” said one former BT executive. “He thinks there’s value that has not been realised. He will expect things to change.
He will not be passive.”
Vindi Banga, the chair of UK Government Investments, who has known Mittal for decades from his time as head of Unilever India, said: “I think he will offer advice and encourage BT to be bolder in its ambition. He’s no activist, but Sunil will no doubt bring his lifetime of experience to the company.”
