MARKET TALK: BT Pension Deficit Payments Quantified -Liberum

14th Jul 2010 09:14

0814 GMT [Dow Jones] Financial Times's news report on BT Group (BT.A.LN) pensions "may reignite pension concerns," says Liberum Capital analyst Mark James, however "pension deficit payments are readily quantified and we are a long way away from the crown guarantee being needed." Employee pension plan trustees have asked the High Court to rule how much taxpayers would have to underwrite if BT collapsed. The hearing continues. "More relevant is the fact that BT has already agreed with the trustees, in February, a 17-year funding plan to rectify the GBP9B deficit...we would argue that any pronouncement from the regulator is likely to have more of an impact than the Crown Guarantee ruling." Buy rating, 160p target. Stock +0.7% at 144p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 14, 2010 04:14 ET (08:14 GMT)