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BT shares plunge 19% on Italian scandal

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+John.    1,396


Shares in BT have plunged 19% after it was forced to write down the value of its Italian business by £530m because of years of "inappropriate behaviour".


The sum is far higher than the £145m initially anticipated and BT warned it would affect its results for the next two years.


BT began investigating Italy's accounting practices last October.


It emerged that the problems were "far greater than previously identified" and occurred over "a number of years".


In addition, BT provided an update on its outlook and said that there had been a deterioration in both the public sector and international corporate market.


Along with the Italian scandal, BT now expects operating profit for the current financial year to be £7.6bn, compared to previously guidance of £7.9bn and revenue to be flat. It also forecasts that both sales and profit will be flat for the year ending March 2018.


The market valuation of BT tanked by £5.5bn in a matter of minutes in Tuesday trading as its shares fell by fell by more than 15% to 326.8p.








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