BT considers global services, business merger - report

BT is working with McKinsey on possible major changes in its business activities for enterprise customers, the Telegraph reports. The 'Project Novator' is understood to include a potential merger of BT’s global services unit with its business and public sector division. 

The paper's sources said McKinsey is investigating whether BT could seek separate the UK arm of global services, which runs contracts for the government and British multinationals, from its businesses overseas. This could allow the company to sell off foreign businesses while merging global services and the business and public sector at home.

This could prepare the way for the sale of the activities in difficult markets such as Italy, where BT is still reeling from the impact of a major accounting scandal uncovered last year. 

The restructuring may also include mobile operator EE merging with BT's consumer unit. A senior source described the move as a "no brainer" to deliver cost savings, but BT is keen to come up with a structure that does not "crush" EE’s more agile culture.